HD Hyundai Infracore signed an ‘Investment Agreement for Constructing Engine & Battery Pack Manufacturing Facilities’ with Jeollabuk-do, Gunsan-si, and the Korea Industrial Complex Corporation at the Jeollabuk-do Provincial Office on the 26th (Thursday). From left, National Assembly member Shin Young-dae, Gunsan-si Deputy Mayor Shin Won-sik, HD Hyundai Infracore President Oh Seung-hyun, Jeollabuk-do Regional Headquarters Director Park Jong-bae of Korea Industrial Complex Corporation, and Jeollabuk-do Governor Kim Gwan-young.

HD Hyundai Infracore has invested KRW 116.8 billion in Gunsan to diversify its engine business portfolio and leverage new growth engines.

On the 26th (Thursday), HD Hyundai Infracore announced that it has signed an ‘Investment Agreement (MOU) for Constructing Engine and Battery Pack Manufacturing Facilities’ with Jeollabuk-do, Gunsan-si, and the Korea Industrial Complex Corporation at the Jeollabuk-do Special Self-Governing Province Office. In attendance at the event were key officials including Jeollabuk-do Governor Kwan-young Kim, Gunsan-si Deputy Mayor Won-sik Shin, National Assemblyman Young-dae Shin, Jeollabuk-do Regional Headquarters Director Jong-bae Park of Korea Industrial Complex Corporation, and HD Hyundai Infracore President Seung-hyun Oh.

Through this agreement, HD Hyundai Infracore plans to invest KRW 116.8 billion within its 62,700㎡ Gunsan plant site for constructing a defense and ultra-large power generation engine production plant and a battery packaging plant by the end of 2027 and establish mass production facilities.

Related public authorities, including from Jeollabuk-do and Gunsan-si municipalities, will cooperate in providing administrative support such as construction support and regional investment subsidies to ensure seamless factory construction.

With its largest facility investment since being incorporated into HD Hyundai, HD Hyundai Infracore will begin mass production of K2 tank defense engines, ultra-large power generation engines, commercial vehicle and industrial battery packs in the second half of 2026 at the earliest after completing the new plant construction.

The new Gunsan plant can produce 120 tank defense engines per year, 1,250 ultra-large power generation engines with a maximum power output of 3 MW, and 880 MWh battery packs that can be installed in nearly 3,000 electric buses.

HD Hyundai Infracore has secured a foothold for preempting the future construction and industrial machinery electrification market by establishing engine and battery pack production facilities in Gunsan, besides its existing construction machinery production facilities.

The company plans to induce and meet tank engine orders for exports to Poland and Turkey and additional defense engine orders from this location, and has diversified its product portfolio from small and medium-sized engines produced at the existing Incheon plant to ultra-large engines to be produced in Gunsan.

The company currently supplies battery packs to Doosan Bobcat through the Incheon plant, and plans to install battery packs in electric trucks to be released by Tata Daewoo Commercial Vehicles to the market.

President Oh Seung-hyun of HD Hyundai Infracore said, “This investment decision is meant to diversify the profit structure of the engine business unit and leverage future growth engines,” and added, “With this investment, we expect to generate cumulative sales of over KRW 4.5 trillion over the next 10 years.” <End>