Expansion of Partnership
Hyundai Heavy Industries Co., a major South Korean shipbuilder, has signed a memorandum of understanding (MOU) with Saudi Arabian state-run utility firm National Grid SA to expand their partnership in the Middle Eastern country's growing electricity market. The MOU was signed by the company’s electro electric systems division head Joo Young-keol and Mohammad Al-Rafaa, engineering vice president of National Grid SA at the Ulsan headquarters on October 4.
Saudi Arabia is seeking to spend a total of US$89.3 billion by 2021 to rev up its electricity output to 105 gigawatts (GW) from current 65 GW in order to meet growing electricity demand. Accordingly, the heavy electric machine market is expected to have a high growth potential.
Hyundai Heavy Industries supplied the most number of power transformers and gas-insulated switchgears to National Grid SA among domestic companies. Last year, the shipbuilder clinched deals valued at 400 billion won (US$360.36 million) to provide such products to Saudi Arabia alone.
Under the deal, Hyundai Heavy Industries will not only supply the equipment for power grids but also provide support in designing and engineering standardization as well as technology exchange and new product development.
In addition to the latest MOU, Hyundai Heavy Industries signed a MOU with Saudi Aramco for a strategic partnership in November last year and another MOU with the U.S.-based General Electric Company (GE) for a comprehensive cooperation in the shipbuilding, engine and equipment sectors in March. The company also signed an agreement with Russian state-owned oil giant Rosneft in September to create a joint venture for engineering and project management.