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Hanwha Engine (formerly HSD Engine and Doosan Engine)

Hanwha Engine Co., Ltd. is South Korea’s second-largest marine engine builder, headquartered in Changwon. The company was launched on 27 February 2024 as the rebrand of HSD Engine following Hanwha Impact’s controlling acquisition of the company in 2023. The corporate lineage runs Doosan Engine → HSD Engine (2018) → Hanwha Engine (2024). Hanwha Engine builds large-bore slow-speed two-stroke engines under license from MAN B&W (Everllence) and WinGD, supplying primarily Samsung Heavy Industries and Hanwha Ocean (the former DSME) shipyards. Together with HHI-EMD, Hanwha Engine forms the Korean marine engine duopoly that builds most of the world’s large slow-speed two-stroke engines. This article covers the corporate history, ownership transitions, and strategic position. Visit the home page or browse the calculator catalogue for related propulsion engineering tools.

Contents

Background

Hanwha Engine illustrates the rapid corporate restructuring underway in Korean heavy industry through the 2010s and 2020s. The same engine plant in Changwon has, in seventeen years, operated under three different corporate identities — Doosan Engine (until 2018), HSD Engine (2018-2024), and Hanwha Engine (2024 onwards) — reflecting Korea’s industrial transformation, financial restructuring of struggling chaebol groups, and strategic repositioning by Hanwha to integrate marine engine production with its expanding shipbuilding portfolio.

The company’s role in the global marine engine market is significant despite its smaller scale than HHI-EMD:

  • Annual production: ~150-180 large-bore engines per year, ~3-3.5 million kW per year
  • Customer base: primarily Samsung Heavy Industries, Hanwha Ocean (formerly DSME), and other Korean shipyards
  • Cumulative production: substantial; precise figures not publicly disclosed
  • Market position: Korea’s #2 marine engine builder, alongside HHI-EMD as the country’s two principal manufacturers

This article covers the corporate history from Doosan ownership through HSD Engine to current Hanwha Engine identity.

Doosan era (1962-2018)

Doosan Heavy Industries

The Changwon engine plant originated within the Doosan group, one of Korea’s largest industrial conglomerates. Doosan’s heavy machinery business had been founded in 1962 (originally as Hyundai International) and acquired by Doosan in 1976. The company built marine engines under various corporate identities through the 1970s, 1980s, and 1990s.

Doosan Engine Co., Ltd.

In 2007 Doosan Engine Co., Ltd. was formed as a separate listed entity, focused on marine engine manufacturing within the broader Doosan corporate group. Doosan Engine became one of Korea’s major marine engine builders, supplying primarily Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering (DSME), the two largest Korean shipyards apart from HD Hyundai.

Doosan financial difficulties

Through the late 2010s Doosan Group faced financial pressure stemming from issues at Doosan Heavy Industries (the parent group’s flagship). Doosan Engine, as a subsidiary, was affected by group-level restructuring requirements and was identified for divestment.

HSD Engine era (2018-2024)

2018 spinoff

In 2018 Doosan Engine was spun off from the broader Doosan group and rebranded as HSD Engine (“Hyundai Samsung Doosan” — though the actual name reflected the company’s customer base rather than direct ownership). HSD Engine operated as an independent listed company, retaining the Changwon plant and continuing license production for both MAN B&W and WinGD.

Continued operations

Under HSD branding, the company continued:

  • License production of MAN B&W and WinGD slow-speed two-stroke engines
  • Supply to Samsung Heavy Industries (consistently the largest customer)
  • Supply to DSME (later Hanwha Ocean)
  • Some export to non-Korean shipyards
  • Auxiliary engine production (mostly under MAN Holeby license)

Strategic position

HSD Engine’s strategic position through 2018-2023 was sound but constrained:

  • Strengths: established license relationships, dedicated facility, experienced workforce, stable customer relationships with Samsung and DSME
  • Constraints: smaller scale than HHI-EMD limited cost advantages; financial uncertainty from changing ownership; need for capital investment for alternative-fuel engine production

Hanwha acquisition (2023-2024)

Strategic context

Hanwha Group, one of Korea’s other major chaebol groups, had been expanding aggressively in shipbuilding-related sectors:

  • Hanwha Aerospace (defence)
  • Hanwha Solutions (chemicals, energy)
  • Hanwha Impact (industrial holding company)

In 2022-2023 Hanwha acquired DSME (Daewoo Shipbuilding & Marine Engineering) from KDB (Korea Development Bank) and rebranded the shipyard as Hanwha Ocean. This created a major Korean shipbuilder under Hanwha control. Acquiring HSD Engine vertically integrated marine engine production with the shipyard.

MOU and acquisition

In February 2023 Hanwha Impact signed a memorandum of understanding (MOU) for a 33% stake in HSD Engine at ₩226.9 billion (~US$176 million). The transaction was structured as a series of share purchases and capital injections.

The main contract was concluded in April 2023, and the transaction closed in Q3 2023. Hanwha Impact emerged as the controlling shareholder with approximately 32.8% stake. The transaction reflected Hanwha’s strategic priority to integrate engine production with its newly acquired Hanwha Ocean shipyard.

Rebrand to Hanwha Engine

An extraordinary shareholders’ meeting on 27 February 2024 approved the corporate rebrand. Hanwha Engine Co., Ltd. was launched in early March 2024. Hanwha Impact remains the majority shareholder (~32.8% stake).

The rebrand:

  • Aligns the company name with the parent group’s Korean industrial identity
  • Signals continuity with HSD operations while emphasising the new ownership
  • Positions the engine business as part of Hanwha’s “total shipbuilding solution” strategy

Current operations

Plant and capacity

The Changwon engine plant continues as Hanwha Engine’s principal production facility. Annual production capacity:

  • Large-bore slow-speed two-stroke: ~150-180 engines per year
  • Total kW: approximately 3.0-3.5 million kW per year
  • Auxiliary medium-speed engines (under MAN Holeby license): additional production volume

These figures put Hanwha Engine at roughly half of HHI-EMD’s volume but still among the world’s largest engine builders.

Customer mix

Hanwha Engine’s principal customers:

  • Samsung Heavy Industries: long-term major customer, particularly for large container ships and LNG carriers
  • Hanwha Ocean (formerly DSME): now the related-party customer, integrated with engine supply through Hanwha Group ownership
  • Other Korean shipyards (HJ Shipbuilding etc.): smaller volumes
  • Limited export: principally to Asian shipyards

Product range

Like HHI-EMD, Hanwha Engine builds the full range of large-bore two-stroke engines:

MAN B&W variants:

  • MC, MC-C, ME-B, ME-C, ME-GI, ME-LGIM, ME-LGIP

WinGD variants:

  • X-series mainstream
  • X-DF (LNG dual-fuel)
  • X-DF2.0 with iCER

Bore range: 35 cm to 95 cm. Power range: ~3,500 kW to ~87,000 kW per engine.

Strategic position

Korean marine engine duopoly

Hanwha Engine and HHI-EMD together form the Korean marine engine duopoly:

ManufacturerAnnual capacityPrincipal customers
HHI-EMD~160 large + ~600 midHD Hyundai shipyards (internal), some export
Hanwha Engine~150-180 largeSamsung Heavy, Hanwha Ocean

Combined, the two Korean builders account for the majority of slow-speed two-stroke engines built worldwide. The remaining capacity is in Japan (Mitsui E&S DU, J-ENG, Kawasaki) and China (CSSC subsidiaries).

Vertical integration with Hanwha Ocean

Following the 2023 Hanwha acquisition of DSME, the Hanwha Engine + Hanwha Ocean combination provides:

  • Captive engine demand from Hanwha’s own shipbuilding
  • Engineering coordination between engine and ship design
  • Reduced supply chain risk through internal production
  • Strategic flexibility for fuel transition (alternative-fuel ships built in-house)

The vertical integration parallels HD Hyundai’s HHI-EMD + HD Hyundai shipyards model, levelling the strategic playing field for Korean marine engine production.

Alternative fuels

Hanwha Engine is producing dual-fuel and methanol-capable engines for ships built at Samsung Heavy and Hanwha Ocean:

  • LNG dual-fuel for LNG carriers and dual-fuel container ships
  • Methanol dual-fuel for the methanol-fuelled ship orderbook (notably Maersk and other major operators)
  • Future ammonia variants per OEM (Everllence/WinGD) roadmaps

The company’s investment in alternative-fuel production capability is a significant capex commitment under Hanwha ownership.

Industry significance

Korean industrial transformation

Hanwha Engine’s history reflects Korea’s heavy-industry transformation through the 2010s and 2020s:

  • Doosan Group financial pressure and divestment of subsidiaries
  • HSD Engine’s interim period as an independent listed company
  • Hanwha Group’s aggressive expansion into shipbuilding-adjacent sectors
  • Final integration under Hanwha branding

Korean engine production share

Korean marine engine builders (HHI-EMD + Hanwha Engine) collectively produce approximately 50% of the world’s slow-speed two-stroke engines by kW. This concentration creates both strategic strength (cost competitiveness, scale economies) and risk (geographic concentration in geopolitically sensitive region).

Service support

For ships powered by Hanwha Engine (and its predecessor HSD/Doosan) engines, service support flows through:

  • Hanwha Engine itself (for engines covered by ongoing warranty and service contracts)
  • The OEM service organisations (MAN-ES/Everllence and WinGD) for design-related issues
  • Local service agents for routine support

Future outlook

Investment trajectory

Hanwha’s strategic investment in marine engine production includes:

  • Continued capacity expansion at Changwon
  • New production lines for alternative-fuel engines (ammonia, methanol)
  • R&D collaboration with WinGD (a key OEM partnership)
  • Potential collaboration with Hanwha’s other technology assets (defence, aerospace, energy)

Customer relationships

The integrated Hanwha Engine + Hanwha Ocean structure provides a stable customer base. Samsung Heavy Industries remains an important external customer; export to non-Korean yards may grow gradually.

Korean industry consolidation

Whether further consolidation occurs in Korean marine engine production remains uncertain. Both HHI-EMD and Hanwha Engine are now part of stable corporate parents (HD Hyundai and Hanwha respectively), suggesting the duopoly structure is likely to persist.

See also

References