▶ Signs MOU with Fraser Industries on shipyard modernization to support the revitalization of the U.S. shipbuilding industry ▶ To provide an integrated package including shipyard design and construction expertise, production and operational systems, and data management capabilities ▶ "We will support Fraser Shipyards in becoming a key hub for rebuilding the U.S. shipbuilding industry and serve as a trusted partner in its revitalization" HD Hyundai is launching a major initiative to modernize U.S. shipyards. HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company for HD Hyundai's shipbuilding business, said on Monday, July 29, that it recently signed a memorandum of understanding (MOU) with Fraser Industries LLC to cooperate on shipyard modernization projects aimed at revitalizing the U.S. shipbuilding industry.   The signing ceremony, held in Washington, D.C., was attended by President & CEO Kim Hyung-kwan and Technology Advisor Shin Jong-gye of CEO of HD Korea Shipbuilding & Offshore Engineering, CEO Patrick V. Kelly of Fraser Industries, and other executives and officials from both companies.   The agreement marks the first project undertaken by HD Korea Shipbuilding & Offshore Engineering since the company added "development and supply of digital engineering and manufacturing platforms" to its business objectives in March and designated comprehensive shipyard construction solutions as a future growth driver.   Under the agreement, the two companies plan to collaborate across the entire shipyard lifecycle, from construction to operations, including shipyard assessments and solution development; yard and factory layout design; deployment of robotics and automation systems; optimization of costs, schedules, quality and productivity; implementation of AI- and data-driven digital solutions; and expansion of supply chains and workforce training.   To support these efforts, HD Korea Shipbuilding & Offshore Engineering plans to provide an integrated package of technologies and expertise required to build smart shipyards, including shipyard design and construction know-how, production and operating systems, and data management capabilities, effectively transferring its expertise in how to build and operate a shipyard.   In particular, HD Korea Shipbuilding & Offshore Engineering and Fraser Industries plan to sign a contract this year for a shipyard modernization consulting program and use Fraser Shipyards, located on the shores of Lake Superior, one of the Great Lakes, as a demonstration model for revitalizing the U.S. shipbuilding industry. The Great Lakes region has traditionally served as a hub for shipbuilding, maintenance and repair activities in the United States and is home to a key maritime supply chain.   The Great Lakes region is emerging as a key hub for the revitalization of the U.S. shipbuilding industry, aligning with the U.S. government's Maritime Prosperity Zones initiative. Fraser Shipyards, Fincantieri Marine Group and Donjon Marine have formed the Great Lakes Shipyard Alliance and are jointly participating in projects such as the U.S. Coast Guard's new light icebreaker program.   Patrick V. Kelly, CEO of Fraser Industries, said "I am very pleased to join hands with HD Hyundai, which possesses world-class technological capabilities, to introduce advanced techniques across shipyard operations," adding, "The cooperation between the two companies will be an important starting point for the revitalization of the U.S. shipbuilding industry."   Kim Hyung-kwan, President & CEO of HD Korea Shipbuilding & Offshore Engineering, said. "We plan to provide the know-how needed from shipyard design through to operation so as to support Fraser Shipyards in becoming a hub for the rebuilding of the U.S. shipbuilding industry," adding, "Going forward, we will expand the scope of cooperation into various areas and become a reliable partner for the U.S. shipbuilding industry."

▶ Operating profit margin of 10.2%, marking the first double-digit operating profit margin since the launch of the integrated corporation ▶ Profitability-focused sales strategy amid the global market recovery... Even growth across all regions ▶ Continued growth in industrial and defense engines... Strengthening growth momentum through the new Gunsan factory HD Construction Equipment announced through a public disclosure on Wednesday, July 29 that it recorded revenue of KRW 2.4342 trillion and operating profit of KRW 248.9 billion in the second quarter of 2026. Compared to the same period last year, revenue and operating profit increased 18.2% and 92%, respectively. HD Construction Equipment has improved its performance for two consecutive quarters, driven by a profitability-focused product sales strategy and the recovery of the global market since the launch of the integrated corporation. The revenue increase was attributed to the recovery of the global construction equipment market and expanded sales of industrial and defense engines. Operating profit improved due to factors such as increased sales of key regional models including next-generation new models, price increases, and reduced promotional costs, recording a double-digit quarterly operating profit margin of 10.2% for the first time since the launch of the integrated corporation. The construction equipment division’s revenue increased 22% to KRW 2.0182 trillion compared to the previous year. The operating profit margin also improved significantly from last year’s 4.6% to 9.9%. In particular, the next-generation new model excavator launched last year went on full-scale sales in developed markets such as North America and Europe aside from Korea, recording sales growth of 18% and 25%, respectively. Sales of highly profitable medium-to-large models also contributed to the improvement in performance. Sales in Latin America increased 29.9% as demand for mining equipment expanded in countries such as Colombia and Peru. Likewise, the Middle East and Africa recorded a high sales growth rate of 51.4% as the supply of gold mining projects expanded. Similarly, sales in India increased 22.1% due to expanded government-led infrastructure investment, with sales in China increasing 14.1% due to expanded social overhead capital (SOC) investment following the implementation of economic development plans. Thanks to the continued global economic recovery, the engine division recorded sales of KRW 386.1 billion—a 5% increase year-on-year—and achieved an operating profit margin of 15.3%. The expansion of external sales of industrial engines and increased supply of defense engines for the K2 tank drove performance growth. “Along with the recovery of the global market, our sales strategy centered on next-generation new models and high-profit products has been effective. We will expand the foundation for growth by diversifying our business portfolio, including strengthening the response to the defense and power generation markets based on the new engine factory in Gunsan,” an official from HD Construction Equipment said.  

▶ HD Korea Shipbuilding & Offshore Engineering signs definitive agreement with Siemens to implement next-generation marine platform and establish a 3D single-data platform ▶ Aims to build an autonomous manufacturing system that digitally connects the entire shipbuilding process, including design, production, logistics, inspection and sea trials ▶“By building a smart shipyard of the future powered by AI and digital technologies, we will set a new standard for the shipbuilding industry” HD Korea Shipbuilding & Offshore Engineering, the intermediary holding company for HD Hyundai’s shipbuilding business, shared on Thursday, July 23, that it has signed a definitive agreement with Siemens Digital Industries Software, a global engineering software company, to implement a next-generation marine platform. The agreement marks a key step in the company’s’ efforts to develop an AI-powered shipyard of the future and drive the transformation of the shipbuilding industry. The signing ceremony, held in Washington, D.C., was attended by executives and representatives from both companies, including President & CEO of HD Korea Shipbuilding & Offshore Engineering, Kim Hyung-kwan, and President & CEO of Siemens Digital Industries Software, Tony Hemmelgarn. The next-generation marine platform is centered on integrating the entire shipbuilding process—from vessel design and production to supply chain management, quality control and maintenance—into a single 3D-model-based data environment powered by AI and digital technologies, enabling the use of consistent information across every stage of the process. Through the platform, shipyards will be able to transmit design changes and real-time production status updates directly to the production floor and supply chain, enabling informed decision-making to help prevent schedule delays and quality issues. To support this effort, HD Korea Shipbuilding & Offshore Engineering plans to develop a Virtual Shipyard that mirrors actual shipyard operations, enabling the simulation of production processes and equipment operations in a digital environment. As learning and analytical capabilities are essential to realizing a future Physical AI shipyard, where robots and autonomous production systems perform tasks independently, HD Korea Shipbuilding & Offshore Engineering plans to further enhance the next-generation marine platform. Ultimately, the company aims to establish an autonomous manufacturing system that digitally connects every stage of ship construction, from design and production to logistics, inspection and sea trials. “As a leader in industrial AI, automation and digital twin software, Siemens is uniquely positioned to help transform how shipyards design, build and sustain the next generation of vessels,” said Tony Hemmelgarn, President and CEO of Siemens Digital Industries Software. “This strategic collaboration is about more than technology deployment, it’s about establishing a repeatable blueprint for modern shipbuilding. By combining Siemens’ digital capabilities with HD Hyundai’s operational excellence, we can help shipbuilders improve throughput, quality, and workforce productivity while strengthening global shipbuilding competitiveness.” "AI is not merely a tool for improving productivity, but a transformative technology that is reshaping how ships are designed, built and operated,” said H.K. Kim, President & CEO of HD Korea Shipbuilding & Offshore Engineering. “By integrating AI, digital twin and automation technologies into a connected digital shipyard environment, we aim to establish a future-ready model for the shipbuilding industry. Together with Siemens, we look forward to helping accelerate the digital transformation of shipyards worldwide, while contributing to the modernization and competitiveness of the U.S. shipbuilding industry."