HHI-EMD NEWS HYUNDAI HEAVY INDUSTRIES ENGINE & MACHINERY DIVISION

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1 HHI-EMD NEWS HYUNDAI HEAVY INDUSTRIES ENGINE & MACHINERY DIVISION Vol. 38 August Hyundai Heavy s Record Production Milestone of 150,000,000 bhp in Marine Engines Hyundai Heavy Industries Engine & Machinery Division (HHI-EMD) has achieved an unprecedented aggregate production of 150 million bhp in two-stroke engines. The record was achieved in just 36 years after its first marine diesel engine produced in HHI-EMD held a ceremony on June 29 to celebrate the production milestone marked by the completion of the 5017th engine with 72,720 bhp for the 11,000 TEU containership under construction at Hanjin s Subic Shipyard in the Philippines for a Greek owner, Costamare. HHI-EMD has expanded its production capacity to 12 million bhp a year through continuous technology improvement and facility expansion. The company reached 60 million bhp in 2006, 70 million bhp in 2007, 80 million bhp in 2008, 90 million bhp in 2009 and 100 million bhp in Since 1987 HHI-EMD has maintained its position as the most prolific manufacturer of two-stroke engines, holding 35 percent of the global marine engine market.

2 ECO MARINE MACHINERY Commissioning Its First Dual-Fuel 2-Stroke Marine Engine HHI-EMD completed commissioning its first dual fuel 2-stroke marine engine (model: 5G70MEC9.2-GI) on December 29, The dual-fuel engine allowing the ships to run on both marine diesel and natural gas shows higher fuel efficiency and reduced emission compared to traditional marine engines that burn only diesel. The 24,750 bhp low-speed engine, jointly developed with the Denmark-based engine licensor MAN Diesel & Turbo, was delivered to a Korean shipbuilder. HHI-EMD reached the production milestone of 150 million bhp in 2-stroke engines in HHI is also a leading manufacturer of propellers, cargo oil pumps and ballast water treatment systems. HHI-EMD Signed MOU with Korea Gas Corporation for LNG Business HHI-EMD and Korea Gas Corporation (KOGAS) on December 9, 2014 signed the memorandum of understanding (MOU) for cooperation on the development of LNG related technology. The signing ceremony of the MOU was held at HHI- EMD s main building. Mr. Kim Ju-tae, business representative & COO of HHI-EMD, Mr. Yang Youngmyung, R&D director of KOGAS and other guests attended the ceremony. Having considerable synergy between their LNG business profiles, HHI-EMD and KOGAS will combine their accumulated skills to further develop and commercialize the following business areas in accordance with the recent increase in demand for L N G v e s s e l s a n d c h a n g e s i n e n v i r o n m e n t a l regulations: LNG bunkering, gas-diesel fueled power plants and packaged power plants for both domestic and oversea islands, dual fuel engine for clean fuel rail road and small to medium liquefaction plants. HHI-EMD and KOGAS believe that this mutual cooperation will serve to create future value contributing to the increase in sales, which is a winwin for both companies. 2. HHI-EMD NEWS HHI-EMD NEWS. 3

3 ECO MARINE MACHINERY HHI Puts Its Fuel Saving Propeller Attachment, Hi-FIN, into Service Hyundai Heavy Industries (HHI), the world s biggest shipbuilder, launched its fuel saving propeller attachment, Hi-FIN, which proves to be beneficial to shipowners and operators. After a year-long trial of the energy-saving device installed on a 162,000 m 3 LNG carrier ordered by Maran Gas, HHI found that Hi-FIN could save up to 2.5 percent of fuel in comparison with the same type of vessels without Hi-FIN. If the fuel saving ratio is calculated on the basis of an 8,600 TEU containership, the owners or operators of the containership can save about $750,000 per year or $19 million for 25 years, an estimated lifetime of the ship. The energy-saving device attached at the hub of the propeller generates countering swirls that offset the swirls generated by the propeller, and thus improves propulsion efficiency. Thanks to the keen attention Hi-FIN is drawing from shipowners across the globe, HHI has won orders of Hi-FIN for over 30 ships to date, and the company expects more orders now as the device can be installed on broader types of ships including LNG carriers, VLCC, LPG carriers and containerships. HHI-EMD Achieves 9,000 Sets Production Milestone of HiMSEN Engines HHI-EMD reached a new production milestone of 9,000 sets of HiMSEN engines as of May 3, only 4 years after it hit the 5,000 sets milestone in February HHI-EMD has completed testing the 9,000th HiMSEN engine (model: 9H35DF) at the 4-stroke engine assembly and test shop in early May. The engine will be installed on the 14,000 TEU containership being built by Hyundai Samho Heavy Industries for United Arab Shipping Company in the Middle East. HHI-EMD aims to lead the world market for lightweight, high efficiency and high-quality marine engines, as well as compact size through the creative modular design. 4. HHI-EMD NEWS HHI-EMD NEWS. 5

4 ECO MARINE MACHINERY Unloading Cargo Discharge Control Customers Praised Hi-Well Pumps for its Reliability and High Quality HHI-EMD s proprietary industrial and hydraulic pump model, Hi-Well, is being favorably reviewed by its customers. Hi-Well, a hydraulically driven submerged cargo pumping system is the product of HHI s 30 year long technological development and experience in the industrial pump sector. The Hi-Well system was installed on two 51,000 DWT product carriers for the Greek owner Navios Ship management. These vessels were delivered to the owner in November 2014 and January 2015 respectively. The pumps were highly praised for its excellence in reliable performance and high quality by chief engineer of the vessel and Dae Sun Shipbuilding & Engineering via a thank you letter on January 4 and May 12 respectively. HHI-EMD has been manufacturing and supplying a variety of marine pumps, industrial pumps and hydraulic machinery since Appreciative Letters Hi-Well cargo pumping system is designed and manufactured in accordance with ISO 9001, and for efficient cargo handling, stripping and tank cleaning of various ships including product carriers, crude carriers and FPSO. HHI-EMD will continue to assure the quality of its products, and expand the market share of Hi-Well in the global industrial pump sector with tireless technology development and quality after-service. 6. HHI-EMD NEWS HHI-EMD NEWS. 7

5 Research & Developmant HHI-EMD Launches HiEMS for HiMSEN Engines The Corporate Technology Institute and HHI-EMD have completed the development of HiEMS (Hyundai intelligent Engine Monitoring System), which allows the HiMSEN engine to be monitored remotely. In addition to the general remote-monitoring, HiEMS detects engine abnormalities and respond with a solution immediately by transmitting the information to the engine experts in the remote sites. The Corporate Technology Institute and HHI-EMD will continue to enhance the diagnostic ability of the system and apply it to a broader range of engines including main engines, D/F engines, offshore engines and engines for power plants. On January 6 this year, HHI-EMD successfully delivered six HiMSEN engines with HiEMS to Seajacks. Main Features - Engine Status Monitoring - Trend Analysis - Alarm/Fault Management - Performance Curve Based Analysis - Deviation Based Analysis - Remote Monitoring New Diagnostic System Successfully Applied in Dual Fuel Engine HHI-EMD has developed a new HiMSEN engine diagnostic system, HiCAS (Hyundai intelligent Combustion Analysis System), which enables continuous monitoring of the cylinder pressure and combustion performance. It has been successfully applied for several months in the development procedures of H27/33DF engine. HiCAS is an online engine indicating system that acquires and processes the crank angle resolved engine data such as engine speed, in-cylinder pressure, pressure in the intake and exhaust system, etc. This will help to prevent severe damages from occurring in an engine. The new HiMSEN engine diagnostic package (HiEMS included) will be released soon. Main Features - In-Cylinder Peak Pressure - Indicated Mean Effective Pressure - Cycle-to-Cycle Variation - Cylinder-to-Cylinder Distribution - Cyclic Moving Parts Fault Diagnosis Seajacks WTIV (Wind Turbine Installation Vessel) HiEMS (Hyundai intelligent Engine Monitoring System) HiCAS (Hyundai intelligent Combustion Analysis System) HiMSEN Engine Diagnostic Package 8. HHI-EMD NEWS HHI-EMD NEWS. 9

6 Power Plant HHI-EMD to Supply Packaged Power Station to Panama HHI-EMD signed the supply contract for thirty four (34) units of 1.7 MW packaged power station (PPS) and auxiliary equipment with JINRO Power, an independent power plant company in Panama on June 12. HHI-EMD will deliver the PPS at the end of August this year. The power plant will supply an electric capacity of 57.8 MW to the national grid in Panama upon completion at the beginning of HHI-EMD entered the electricity market in Panama in 2011 by obtaining an EPC order for a 70 MW engine power plant from Autoridad del Canal del Panama (ACP). This PPS project is the second order in Panama and from next year, HHI-EMD s generating unit will take charge of a total of 128 MW electric capacity in Panama. HHI-EMD s PPS is a containerized type generating unit operated by HiMSEN engines. Thanks to its many advantages such as fast delivery time, easy transportation and simple installation, PPS is becoming the preferred solution for resolving electric power shortages in remote areas. It has received recognition for its performance and marketability by supplying more than 1,100 units all over the world to date. HHI-EMD expects to strengthen its global presence in the Panamanian electric generation market through this PPS order and expand the market to cover the whole of Latin America. HHI-EMD to Supply Two Gas Engine-Generator Units to USA HHI-EMD won an order from Cubit Power One Inc., for two HiMSEN engine generator sets, which will supply continuous power for microgrids in New York, USA, on January 19. This marks the first of HiMSEN engines to be installed in North America and also the first to supply both electricity and thermal energy that operate at efficiency levels of as high as 80 percent. The two sets of HiMSEN 12H35/40GV gensets (5 MW each) is scheduled to be shipped in October this year. Through this project HHI-EMD expects to expand its business further in the North American market. 10. HHI-EMD NEWS HHI-EMD NEWS. 11

7 Industrial Machinery Robot & Automation HHI-EMD Completes Commissioning of the Boiler Feedwater Pump for the Uzbekistan Talimarijan Project HHI-EMD successfully completed the commissioning of the Unit 3 Boiler Feedwater Pump of 929 MW for the Uzbekistan Talimarjian Thermal Power Plant Project on February 12. A total of four people from Uzbekistan Electricity Company and Hyundai Engineering & Construction attended the commissioning ceremony. They expressed their gratitude towards HHI-EMD s thoroughness in preparation, inspection as well as producing a high performance boiler feed water pump. Hyundai Heavy Industries Develops 10.5-Generation LCD Handling Robot HHI unveiled a new 10.5 th generation LCD handling robot. The new generation robot can handle LCD panels measuring 3,370 mm by 2,940 mm, about 1.8 times bigger than the 8th generation panels. The robot s foldable structure maximizes users convenience in transportation and installation. The machine, weighing 120 kg and operable at a maximum height of 6.9 m, features enhanced joints providing 10 percent improvement in speed. Its lighter and stronger structure from previous generations also enables the machine to conduct much more precise operations. With the development of this new generation robot, HHI now has a full line-up of 10 different LCD handling robot models ranging from 2nd generation (cellphone display screen) to 10.5th generation (ultra-large TV panel). HHI, taking up 40 percent and 30 percent of domestic and overseas LCD handling robot market share respectively, expects to sell more than 100 units of the machine per year. Robot for Steel Profile Cutting was Successfully Localized - Annual Cost-Benefits of 600 Million Korean Won HHI s Industrial Technology Institute of Automation has succeeded in localizing the Steel Profile Plasma Cutting Robot. Recently HHI applied two sets of its independently developed steel profile cutting robot to the fabrication line in the shipyard. HHI-EMD Completes Commissioning of the World s Largest Pump Factory HHI-EMD successfully completed the commissioning of the world s largest pump factory on February 7. The pump factory was built for Jeddah South Power Plant Project, the biggest water cooling pump in the world, for Saudi Electricity Company. The pump is the water cooling component of thermal power plants with a discharge size of 3,000 mm and flow rate of 89,000 m 3 / hour and has a higher performance and flow rate than the pump produced by Mitsubishi Heavy Industries in Japan with a flow rate of 77,600 m 3 / hour. Upon the successful completion of the project, HHI- EMD has won recognition for its product capacity as the biggest pump with high performance from domestic and overseas markets. The robot processes the varied shapes of section steel for shipbuilding using electrical energy (plasma) which has ultra-high temperature. Unlike the existing robots, it can perform various tasks such as steel profile transportation, marking, cutting, etc. with one controller. In addition, it can detect the occurrence of steel deformation by a touch sensor and reposition the cutting position. HHI-EMD expects to save approximately $600,000 per annum compared to the conventional robots by reducing inferior products. 12. HHI-EMD NEWS HHI-EMD NEWS. 13

8 Quality Management / Customer Service HHI-EMD, 15 WORLD TOP-CLASS PRODUCTS APQP Education in Engine & Machinery Division Quality Innovation Department of HHI-EMD held an Advanced Product Quality Plan (APQP) presentation for major production part suppliers in the Human Resources Development Institute on March 26. APQP is a system to prevent the occurrence of quality problems. It ensures that each step in the production process from planning to manufacturing is verified. The presentation has been carried out since 2012 for major part suppliers of HiMSEN engines, main engine, robots, etc. HHI-EMD is expected to continue to secure enhanced quality control systems for parts and gain quality competitiveness through continuous improvement with suppliers by applying the APQP system to all products. Since 2001, with the support of Korea s Ministry of Knowledge Economy to promote exports, the World-Class Product Award has been given to domestic products which are ranked within the top five in the global market, have a market share over 10 percent, and market volume of over $ 50 million LCD Handling Robot Marine Propulsion Shaft Side-Thruster 2008 Starting this year, the number of items and range of industrial machinery products will be increased. The presentation was attended by 53 affiliates of which 74 people requested for more education contents. 2-Stroke Engine Cylinder Frame 2-Stroke Engine Turbocharger 4-Stroke Diesel Power Plant Packaged Power Station 2007 Sales Agents Meeting Hosted by Global Service Department Global Service Department of HHI-EMD held the 2nd quarter meeting for sales agents at HHI-EMD s main office building on July Cylinder Liner Cargo Oil Pump Industrial Robot 2004 A total of 50 people from nine agencies including HEESC, DINTEC, and OCEAN Marine Service; Mr. Ahn Kwang-hean, vice president of After-sales Service & Quality Management Department; and staff from the Global Service Department attended the meeting. The meeting comprised of two sections: in the first section, each agent presented their sales target achievements and strategies for the 1st quarter of 2015, and in the second section the agents presented the sales targets and strategies for the 2nd quarter based on the free market policy of HHI-EMD for spare parts sales and services. 4-Stroke Diesel Engine Crankshaft Stroke Diesel Engine Propeller In the meantime, the Global Service Department plans to hold a quarterly agent meeting to strengthen its sales activities and continued exchange of information. 2-Stroke Diesel Engine 2-Stroke Diesel Engine Crankshaft 14. HHI-EMD NEWS HHI-EMD NEWS. 15

9 HHI-EMD provides complete LNG package solutions for LNG fueled ships and LNG carriers 1000, Bangeojinsunhwan-doro, Dong-gu, Ulsan, South Korea Marine Engine & Machinery Sales Dept. (Domestic) (International) Tel: Tel: HHI-EMD Korean-English 24/7 Call Center