HHI-EMD NEWSH Y U N D A I H E A V Y I N D U S T R I E S ’ E N G I N E & M A C H I N E R Y D I V I S I O N

www.hhi.co.kr / www.hyundai-engine.comVOL. 29 November 2011

HHI-EMD Participated in KORMARINE 2011

H YUNDAI HEAVY INDUSTRIES’ Engine Machinery Division (HHI-EMD) participated in KORMARINE 2011 and held a variety of promotions in BEXCO, Busan from October 26 to 29.

KORMARINE is an international shipbuilding and marine exhibition held every two years since 1978. This year, major Korean shipbuilders, leading international shipbuilders, domestic & international shipbuilding machinery companies and about 40,000 visitors attended the exhibition. Exhibitors also had the chance to gauge market trends and keep up-to-date with the latest technological advancements.

Mr. Kwon Oh-shin, Senior Executive Vice President and COO of Engine & Machinery Division visited the exhibition booth to encourage visiting HHI members. Mr. Kwon emphasized the staff members to create the best exhibition in order to further strengthen the Company’s global presence, attract new customers, and actively participate in more domestic and international exhibitions. He also stressed the importance of engaging with customers so HHI-EMD can actively and flexibly respond to changes in the shipbuilding and marine market.

The most popular items at HHI-EMD’s booth were the HiMSEN 18H25/33V engine, the Submerged Cargo Oil Pump used in product oil tankers & Steam Turbine of the cargo oil pump used to load and unload oil tankers, the UV Reactor used in HHI-EMD’s Eco-Ballast Water Management System, the Side Thruster used for easy ship maneuvering.

HHI-EMD is planning on participating in twelve international and domestic exhibitions starting from MECSPE 2011 (Robot Fair) held in Milan in March to Power-Gen International 2011 which will be held in Las Vegas in the U.S. in mid-December, and promoting public relations with its products and mock-ups. HHI-EMD’s next outing is Marintec China 2011 to be at Shanghai New International Expo Center in China from November 29 to December 2.

HHI-EMD Participated in KORMARINE 2011

2. HHI-EMD NEWS

HiMSEN 4-STROKE ENGINE

O ne among the domestic major shipbuilders’ staff members on the spot said, “HiMSEN engine

developed by HHI-EMD successfully passed the Type Approval Test (TAT) which enhances the credibility of HiMSEN engine and contribute to new marine operation order-taking.”

Drillships and other offshore vessels require engines to be designed to severe criteria than engines used in commercial ships.

The HiMSEN engine was developed by HHI-EMD in 2000 as the main and supporting propulsion unit in commercial ships and for land-based power plants. Since the first

engine rolled off the line, over 6,850 engines have been exported to 40 countries around the world.

HiMSEN engines for electricity generation on land were installed on Packaged Power Station (PPS) and Diesel Power Plant (DPP), and they are contributing to solving their electric power shortages in Middle & South America, Middle East, Africa, etc.

Highlighting the advances made in HHI’s engine design, HHI-EMD has taken orders for 116 drillship-mounted HiMSEN engines so far this year from leading drilling companies such as American Diamond and Noble Drilling.

Taking Orders of 116 HiMSEN Engines for Drillship

HiMSEN Engine, Advancing into The Offshore Market

H HI-EMD successfully c a r r i e d o u t 2 5 °

inclination type approval test required by DNV for 1 6 H 3 2 / 4 0 V e n g i n e i n HiMSEN Engine Techno Center on October 14, 2011. It is the first type approval test in Korea and 25° inclination condition is the special requirement for severe offshore area.

HiMSEN H32/40(V) model i s the HHI -EMD’s own designed earth-fr iendly 4-stroke engine and they have been appl ied with ma in d i ese l gene ra to r engine for offshore project with power range of 6MW ~ 10MW to be mounted on offshore equipment such as drillships and semi-submersible rigs. The engine has been specially designed by HHI-EMD to withstand the rough conditions of the North Sea.

In particular, the recent test verified the durability of the engine parts and the driving performance considering adverse marine environments such as waves exceeding 10~20 meters.

After the test, it has been verified that H32/40(V) engine

is normally operated with 25° inclination condition with high reliability and assurance in result that HHI-EMD has perfectly carried out the engine component and test facility jig design. It will enhance HiMSEN engine’s market share for offshore project in the future.

F u r t h e r m o re , H H I - E M D a l s o c o n d u c t e d t h e demonstration of 25° inclination test together with the representatives of major shipyards (DSME, SHI, HHI-Shipbuilding Division, etc.) on October 18, 2011.

HiMSEN H32/40V 25° Inclination Type Approval Test

HHI-EMD NEWS 3.

HiMSEN 4-STROKE ENGINE

PDM System for HiMSEN Engine Was Developed

H H I - E M D h e l d t h e c o m p l e t i o n presentation for the HiMSEN engine

PDM System on August 18.

At the presentation, Mr. Kwon Oh-shin, Senior Executive Vice President and COO and 60 participants saw a presentation on the development of the PDM System.

The new Product Data Management (PDM) system is a database cataloguing the Company’s products and services across all divisions. The PDM system is designed to increase security, especially regarding technical data, and expedite the execution of new orders.

Current ly only appl icable to HiMSEN engines, Mr. Kwon announced that the system will also be applied to pumps, robots, and other products.

IEEE387 Initial Type Tests for Nuclear Power Plant Emergency Diesel Generator

H H I - E M D f i n i s h e d s e l f cert i f icat ion test for the

H32/40 engine, a nuclear power plant emergency diesel generator in April. In August, HHI successfully completed the load capability test, start & load acceptance test , margin test , and earthquake-resistance test for the engine, according to IEEE387-1995 with L loyd ’s Reg i s te r, t he o f f i c i a l inspect ion organizat ion of the International Atomic Energy Agency, and the Amer ican Soc ie ty o f M e c h a n i c a l E n g i n e e r s i n attendance.

As a result, HHI-EMD HiMSEN H32/40 engine can now be used for a vessel’s main and auxiliary engine, land-based power plants, drillships, and nuclear power plant’s emergency power generator. Based on the engines strong competitiveness, HHI will be able to enter international markets and aid in national and industrial development.

HHI-EMD developed the HiMSEN engine in 2000. The Company now has 8 models including the aforementioned H32/40 with 500 kW output per cylinder. HHI has produced 6,850 HiMSEN engines since the first engine rolled off the line.

4. HHI-EMD NEWS

2-STROKE ENGINE

H HI-EMD got an order of 10 sets of 2-stroke diesel engines from CSBC in Taiwan.

Lee Jai-seong, President & CEO and Kwon Oh-shin, Executive Senior Vice President & COO signed a big contract for 10 sets of 76,230 hp engines with Tang Tay-Ping, President visiting CSBC, Taiwanese shipbuilder on July 14.

It is the hefty contract for 2-stroke diesel engine this year, and the ordered engines are for 8,000 TEU containers, and will be scheduled to be delivered from December of the next year to November, 2014 sequentially.

In the meantime, CSBC, Taiwanese shipbuilder has cooperated with HHI-EMD since 1995, and the company placed orders for about 80 engines up to date.

Winning Overseas Order for 10 Sets of 2-Stroke Engines in Taiwan

H HI-EMD visited Japanese major shipyards such as K-Line, MOL, NYK and National oil exploration

company, INPEX, and made a presentation for its sales promotion of ME-GI engine, HiMSEN DF engine and HHI-Fuel Gas Supply System (FGSS) on November 18th and 19th in Tokyo with HHI-SBD (Shipbuilding Division) as a technical strategy for strict environment regulations in the future, as the increase in the demand on earth-friendly ships using Liquefied Natural Gas (LNG) is expected.

The joint technical seminar of Engine & Machinery Division and Shipbuilding Division (SBD) this time paved the way to receive the attention to LNG fueled vessel and dual fuel diesel engine from shipowners and strengthened close relations with them.

HHI-SBD and HHI-EMD are going to jointly hold the seminar continuously in order to preempt LNG fueled vessel market in the future.

Presentation, ME-GI, HiMSEN & FGSS for LNG Fueled Vessel in Japan

T he HYUNDAI NoNOx Selective Catalytic Reduction (SCR) system will meet the most stringent IMO Tier III

emissions standards (2016), and is the most reliable and durable emission control solution.

HHI completed development of the new NoNOx SCR system to remove NOx in exhaust gas from marine diesel engines. NOx is one of the major components of air pollution along with sulfur oxide and particulate matter. The catalyst applied to the NoNOx system reduces NOx emissions by at least 95% and has good durability on deactivation by sulfur and heat.

Hyundai Heavy Industries tested the performance of the NoNOx SCR system on the Hanjin Pittsburg. The NoNOx SCR system does not reduce the efficiency of the engine and turbocharger but shows high NOx removal efficiency.

By successfully developing the SCR system, HHI expects the system to contribute to revenue growth and eco-friendly ship technology.

HYUNDAI NoNOxTM SCR System

HHI-EMD NEWS 5.

DIESEL POWER PLANT

9 Sets of 1.7 MW PPS for Iraq

12 Sets of 18H32/40V GenSets for Bangladesh

H HI-EMD received an order for twelve diesel generating sets to be installed in a new 100 MW

diesel power plant in Bangladesh on June 7.

This diesel power plant will be built in Bosila and will use 12 sets of HiMSEN 18H32/40V engines, each being 8.3 MW. The new plant will begin operations in 2013.

With the 70 MW Diesel Power Plant in Bera, Bangladesh recently completed, this will be HHI-EMD’s second major diesel power plant project in Bangladesh. The Company expects to receive two more orders for 108 MW diesel power plants before the end of 2011. With these orders, HHI-EMD’s HiMSEN engines will produce a total capacity of 400 MW in Bangladesh by early 2013.

H HI-EMD, t he wo r l d ’s l a rges t d i ese l eng ine manufacturer, received an order for nine more

Packaged Power Stations (PPS) from Ventech Engineering on October 11.

The newly ordered PPS will supply electric power to Kar Refinery in Iraq. This order is in addition to this year’s contract to supply five 1.7 MW PPS to be installed in Erbil, Iraq and this is the third project from Ventech Engineering.

Nine sets of 1.7 MW PPS powered by Hyundai HiMSEN 9H21/32 engines will be supplied by the end of December, 2011 and installed by the second quarter of next year.

Thanks to its containerized design, easy transportation, and easy installation, Hyundai’s PPS are gaining popularity in the Middle East and South America. Addit ional ly, HHI’s generators are suitable for adverse conditions as well as urgent needs and have seen service in Japan, Haiti, and Chile following their respective disasters.

With this order, HHI-EMD expects to receive additional orders from new refineries in the Middle East including Iraq in the near future.

HHI-EMD now has exported more than 1,600 diesel generator sets to countries in South America, the Middle East and Africa.

2-Stroke Diesel Enginefor La Baja III 40 MW DPPWas Shipped

H HI-EMD shipped a 2-stroke diesel engine of 12K80MC-S to Mexico for the La Baja III 40

MW Diesel Power Plant (DPP) on September 15, 2011.

The 40 MW DPP, ordered by Acciona Instalaciones, will be installed in La Paz, Mexico and will supply electricity to the national grid.

As this is the second project ordered by the Mexican Government, the DPP technology is expected to garner interest from neighboring countries also looking to upgrade their national power grids.

6. HHI-EMD NEWS

HYDRAULIC MACHINERY

H HI-EMD participated in the first 2011 KIF, the biggest domestic exhibition in Korea in KINTEX (100,000 m²), Go-

yang, Gyeong-gi Province from on September, 28th to October 1st.

KIF is the biggest capital goods industry exhibition in Asia to preempt the North East Asian market such as China and India which have emerged since the 34th 2011 Korea Machinery Exhibition. KIF is one of the global top exhibitions integrated by 6 major domestic exhibitions organized by Ministry of Knowledge and Economy. 1,660 companies from 38 countries participated and 103,000 visitors attended, which hit a record as ever the largest one.

In particular, HHI-EMD was the center of high attention from staff members and visitors by displaying the mock-up of Boiler Feed Water Pump, UV Reactor and Submerged Cargo Pump of hydraulic machinery, and the mock-ups of HiMSEN engines 9H21/32, 18H32/40V, 18H35GV developed by HHI-EMD and the real car body robots in 2011 KIF.

HHI-EMD, 2011 KIF Participation

HYUNDAI Ballast Water Management System, Preempting the “Green Ship” Market!

H HI-EMD developed earth-friendly facilities

to prevent the pollution of the marine ecosystem and c a m e t o p r e e m p t t h e “Green Ship” market.

On November 21, HHI-EMD announced that the Hi-Ballast water management system using electrolysis was g ran ted f i na l t ype approval by the Korean government.

Hi-Ballast is a ballast water management using electrolysis to filter marine organisms over 50 ㎛ out of seawater used in ballast tanks.

The system can sterilize up to 8,000 ㎥ seawater per hour. It is being well received by shipowners because it consumes less electricity than other ballast treatment systems and has a longer product life through the use of specially coated electrodes.

HHI-EMD has secured two k inds of ba l last water management technologies for vessels including Eco-Ballast, a ballast water treatment system using ultraviolet light for disinfection.

In addition, HHI-EMD is now aggressively attacking the market by winning contracts of 30 vessels for Hi-Ballast and Eco-Ba l l a s t wa te r managemen t s ys tems . Ballast water management system is needed to sterilize ballast water.

When the ballast water is discharged prior to loading cargo, the water may be i n f e c t e d w i t h f o r e i g n microorganisms and bacteria

which could have a negative impact on the local marine environment.

Mr. Y.R. Choi, Senior Vice President of Hydraulic Machinery said, “We can make ballast water management systems to fit any vessel and marine environment. Our clients can have peace-of-mind when the use our Eco-Bal last or H i-Ba l last systems because they are approved by the Korean government.

HHI-EMD NEWS 7.

HYDRAULIC MACHINERY

Delivery of HYUNDAI Pumps to Shin-Gori Nuclear Power Plant

H HI-EMD supplied Main Feed-water Pumps for the 1400 MW Shin-Gori

Nuclear Power Plant being constructed in Gori at a secret time in September.

The order includes total 3 sets of Main Feed Water Pump, with each pump having a drive rating of 13,927 hp with the flow rate of 21,600 gpm at head of 2,390 ft.

HHI has supplied all the Main Feed Water Pumps to Korean nuclear power plants for more than a decade.

H HI-EMD was awarded a contract to supply large vertical pumps for

insta l la t ions in the LNG Receiv ing Terminal to be built in Samcheok, Korea. The order includes 4 sets of Seawater LNG Vaporizer Pump (3 sets : 12,000 m3/h x 33.9 m and 1 set : 6,000 m3/h x 33.9 m). These pumps were delivered on August 31, 2011.

HHI-EMD a lso supp l ied Seawater Vaporizer Pumps to the Tongyeong and Pyeongtaek LNG Receiving Terminals.

Delivery for Seawater LNG Vaporizer Pumps

Forum and Exhibition on Ballast Water Management in Turkey

H HI-EMD and Hyundai Industrial Research Institute (HIRI) attended Global R&D Forum and Exhibition on Ballast Water

Management in Turkey from October 26 to 28. It is sponsored by the GEF-UNDP-IMO GloBallast Partnership (GBP) Program which aims to assist countries to reduce the risk of aquatic bio-invasions mediated by ships’ ballast water and sediments.

In this forum, many topics and issues are discussed for ballast water management technology such as the sampling and monitoring method for ballast water, new ballast water treatment mechanism, united state coast guard (USCG)’s regulation guide line, etc .

Meanwhile, HHI-EMD installed their own booth and showcased their ballast water management system (BWMS) which is “Eco-Ballast” and “Hi-Ballast”. “Eco-Ballast” is UV irradiation type and “Hi-Ballast” is electrolysis type. Many people visited HHI-EMD’s booth during the exhibition, they showed a great interest to HHI-EMD’s BWMS. And several companies expressed interest in distributing HHI BWMS in their respective countries.

Power Plant Pumps for Simal Power Plant

H HI-EMD received an order to supply major power plant pumps to be installed

in the Simal Power Plant to be built in Azerbaijan in September.

The order is for two sets of HP/IP Feed water Pumps having the specification of 1,170 m3/h x 1,472 m x 2,150 kW), 2 sets of Circulation Water Pumps (26,620 m3/h x 26 m x 2,500 kW) and 2 sets of Condensate Extraction Pumps (527 m3/h x 186 m x 380 kW).

The delivery is scheduled for September 15, 2012.

8. HHI-EMD NEWS

Robot System

ROBOWORLD 2011

H HI-EMD, Ko rea ’s l ead ing industrial robot manufacturer,

exhibited 12 robots at ROBOWORLD 2011 at the Korea Internat ional Exhibition Center on October 27 to 30.

The industrial robots featured at HHI’s booth were small robot systems, car assembly robots, and 8th generation LCD handling robots.

Small robot systems were popular with visitors as they can be configured for a variety of functions including nonstop vision inspection, arc welding synchronized with positioned, picking for non arranged parts, and golf putting. This type of robot is a high speed type with a 20 kg payload and 1,800 mm maximum reach. It can also be used for general arc

welding, sealing, and small parts handling.

HHI-EMD’s car assembly robot system comprises of four robots operating together to handle car parts up to 300 kg in weight.

The newest attraction was two dwarf robots designed to be small enough

for spot welding in narrow spaces.

The 8th generation LCD handling robots are double beam type to transfer 2.5 meter by 2.2 meter LCD panel and 6 generation link type to transfer 1.9 meter by 1.5 meter LCD panel. Especially, these link type robots can expand and retract in the height direction which benefits with efficient use of space.

HHI-EMD’s RAILBOT Passes Pre-Inspection

H HI-EMD announced the successful pre-inspection for the train welding robot system (RAILBOT) in their new Robot Shop in

Ulsan, Korea. The RAILBOT system was inspected by officials from Dalian Locomotive and Rolling Stock Company (DLoco), one of the biggest train production companies in China.

HHI-EMD won the order for 10 sets of RAILBOT from DLoco based on HHI-EMD’s previous experience with car welding systems. The train welding robot systems will be delivered to DLoco at the end of November.

So far, HHI-EMD had completed orders for over 20 RAILBOT sets for Chinese train production companies including Changchun Railway Vehicles and Beijing Subway Rolling Stock Equipment.

With HHI-EMD registering RAILBOT as a trademark in China earlier this year, the division will extend their RAILBOT sales in emerging China market.

TIROS 2011 in Taiwan

H HI-EMD attended the Taiwanese International Robot Show 2011 (TIROS 2011) from August 31 to September 3 to

showcase the LCD Handling Robot and Industrial Robot.

During the TIROS 2011, HHI-EMD had a constructive meeting for the purpose of developing inquiries for LCD Handling Robot and Welding robot with its potential customers from around the world.

HHI-EMD NEWS 9.

T he HiMSEN Global Academy held a graduation ceremony for trainees from

KITO in HHI Engine & Machinery Division on October 14.

The three trainees took the one-week basic course for the HiMSEN 6H17/28 engine, installed on PEINA250 of KITO.

The three trainees of KITO have taken a basic course for a week.

This course was focused on control of HiMSEN engine. The program covered all aspects of operation & maintenance and helped trainees to fulfill engine maintenance & performance duties.

Since 2005, the Academy has trained 565 trainees from 59 teams for stationary power plants, 256 trainees from 36 teams for marine gensets and 692 trainees from 34 teams for other types of engines.

KITO Engineers CompletedHiMSEN Training

CUSTOMER SERVICE

T he customer service department of HHI-EMD held the opening ceremony for the

new HiMSEN Global in the 3rd floor Administration Building of 4-Stroke Engine Ass’y & Test Shop on September 30 attended by executives and staff members, including the head of HHI-EMD, Mr. Kwon Oh-shin.

Mr. Kwon said that the HiMSEN Global Academy, formerly known as the HiMSEN School, has provided broad knowledge on the HiMSEN engine to over 1,500 people from around the world, improved technological understanding of the HiMSEN engine, enhanced reliability by preventing problems in advance, and created synergy by exchanging human resources with customers’ technical staff.

Also Mr. Kwon announced that the HiMSEN Global Academy will secure education capacity by expanding rotation education at major power plant sites, customer-oriented education for all HHI-EMD products such as marine pump, turbines, side thrusters and internal education in the future.

The HiMSEN Global Academy will advance by building the close cooperation system between executives and staff members to the day when the HiMSEN Engine stands on

the center of the engine-building market in order to make the world No. 1 engine.

Some 1,500 domestic and overseas service agents have completed courses on the HiMSEN engine. Currently, a team from the Ecuadorian 192 MW PPS power plant and service agents from Dubai are taking courses at the HiMSEN Global Academy.

HiMSEN GLOBAL ACADEMY Opening Ceremony

10. HHI-EMD NEWS

HHI-EMD, 15 World Top-Class Products (2001~2011)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%, and market volume of over USD 50 million.

Marine Propulsion Shaft Side-Thruster

2009

LCD Handling Robot

2011

2-Stroke Engine Cylinder Frame

2-Stroke Engine Turbo Charger 4-Stroke Diesel Power Plant Packaged Power Station

2008

Cylinder Liner Cargo Oil Pump Industrial Robot

2007

4-Stroke Diesel Engine Crankshaft

2006

4-Stroke Diesel Engine Propeller

2004

2-Stroke Diesel Engine Crankshaft

2003

2-Stroke Diesel Engine

2002

HHI-EMD NEWS 11.