HD Construction Machinery has inaugurated a new engine and battery pack plant in Gunsan, South Korea, targeting the high-output generator market for artificial intelligence (AI) data centers.
On October 28, HD Construction Machinery held a ceremony to mark the opening of the Gunsan engine plant located within the Gunsan National Industrial Complex. The event was attended by over 200 guests, including Cho Young-cheol, Vice Chairman of HD Hyundai; Moon Jae-young, President of HD Construction Machinery; Lee Won-taek, Governor of North Jeolla Province; Kim Ui-gyeom, a member of the National Assembly; Kim Jae-jun, Mayor of Gunsan; and Park Tae-hyun, Director of the Ministry of Trade, Industry and Energy's AI Policy Division.
The new Gunsan engine plant was developed over two years on a site of approximately 19,000 pyeong (62,700 square meters) with an investment of 116.8 billion won. The facility incorporates assembly robots, autonomous mobile robots (AMRs), pre-quality defect detection equipment, and an integrated control tower to enhance quality and production efficiency.
The newly opened plant has the capacity to produce 120 defense engines for tanks annually and 1,250 large power engines ranging from 1 to 3 MWe each year. Additionally, it can produce battery packs with a maximum capacity of 1,460 MWh, enough for about 9,400 electric buses.
In response to the surging demand for high-output generators for AI data centers, HD Construction Machinery plans to begin mass production of a 37-liter (1.3 MWe) model in the first half of next year, followed by a 77-liter (3 MWe) model in 2028 and a 50-liter (2 MWe) model in 2029.
The new plant will not only ensure a stable supply of defense engines for tanks in the long term but will also expand the supply of battery packs for commercial vehicles, construction machinery, and industrial applications.
During the ceremony, the new 37-liter large power engine, named 'DX37,' was unveiled along with the announcement of a new division name and slogan. The division will be called the 'Power Solutions Division,' reflecting its mission to provide the power that drives industries through engines and battery packs. The new slogan, 'Powering the Next,' embodies the commitment to realizing future technologies and creating new opportunities.
HD Construction Machinery aims to achieve 2.5 trillion won in sales from its engine business by 2030, nearly doubling its target from 1.3 trillion won in 2025.
Moon Jae-young, President of HD Construction Machinery, stated, "We will proactively create new business opportunities and realize future technologies in response to the demand for new energy. Through this, we aim to grow alongside the local community."
* This article has been translated by AI.
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