H 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

Vol. 36 July 2014 www.hhi.co.kr www.hyundai-engine.com

Hyundai Heavy Industries-Engine & Machinery Division (HHI-EMD) staged sales and marketing promotions at Sea Japan 2014 International Maritime Exhibition and Confer-ence in Japan from April 9th to 11th.

Sea Japan 2014 is the biggest international shipbuilding and marine equipment exhibition, offering information exchange on shipbuilding technology and marine industry trends. This year the industrial event was boasting busi-nesses from 466 companies including shipowners, ship-builders, marine service companies, and marine equipment manufacturers from all over the world.

HHI-EMD displayed the models of HiMSEN engine 9H21/32, one cylinder unit for HiMSEN H35DF engine and Hi-Ballast along with the graphics of cargo oil pump and turbine, side thruster, hi-well cargo pump, propeller, fuel gas supply system (Hi-GAS), and selective catalytic reduction (NoNOx). Also, HHI-EMD hosted two techni-cal seminars on its products, attracting strong interest from shipowners and shipbuilders.

Taking this opportunity, HHI-EMD made a contract with Japan’s Imabari Shipbuilding to provide eight sets of Hi-Ballast for 61,000 DWT bulk carriers.

HHI-EMD at Sea Japan 2014

HHI-EMD NEWS I 2

Hyundai Heavy Industries’ Engine & Machinery Division (HHI-EMD) successfully completed a 25-degree inclina-tion type approval test at the engine techno center of HHI headquarters in Ulsan, in the presence of DNV Classifi-cation Society. The test was conducted on 6MW engine (12H32V) and generators from GE and ABB on Decem-ber 17th 2013 and on January 8th 2014.

HHI-EMD received the inclination type approval for the H32/40V engine (6MW~10MW) for HHI-EMD’s gener-ator in 2011. By receiving inclination type approval for its engines installed on GE and ABB generators, HHI-EMD has thus proven HiMSEN engine’s high technology level and reinforced its competitiveness in the market.

Specially designed to withstand 25-degree inclination condition under extreme sea conditions, the engine’s per-formance and durability have been proven through such test against extreme conditions. The engine will be in-stalled in the offshore facilities such as semi-drilling rigs.

“The HiMSEN engine, HHI-EMD’s own model, has been making headway into the markets for marine and land power generation, emergency gen-set for nuclear power plant, and offshore facilities. Especially it has

proven its wide applications for various generators from both domestic and foreign makers in inclination condi-tion in offshore facilities’ extreme environment. This will lead to obtaining more offshore facilities orders through improved customer confidence,” Engine & Machinery Division said.

In May 2013, 18H25V engine received the inclination type approval for HHI-EMD’s own generator. HHI-EMD has completed offshore facility line-up to cover the range between 4 and 10MW through the successful inclination type approval test and this time HHI-EMD has success-fully completed four consecutive tests.

Until today, the engines for offshore facilities, such as semi-drilling rigs, requiring rigorous quality standard, have been used with well-known foreign makers, MDT (Germany), Wärtsilä (Finland), or Caterpillar (USA), etc.Meanwhile, this year, HHI-EMD has obtained orders for 297 HiMSEN engines for drill ships from worldwide ma-jor oil drilling companies, such as Atwood, Diamond, No-ble, PDC, Rowan, Transocean (USA), Fred Olsen, Sead-rill (Norway) and has stood out in world offshore facilities market.

25-Degree Inclination Type Approval Test Successfully Completed for HiMSEN 12H32V Engine

HiMSEN ENGINE & MARINE MACHINERY

Vol.36 July 2014 I 3

The IMO type-approved Eco-Ballast, a UV-type ballast water management sys-tem (BWMS) developed by HHI, has received the Alternate Management System (AMS) certification from the US Coast Guard (USCG) on March 4th 2014.

The AMS certification is the USCG’s designation for BWTSs that have received the type approval by another flag state according to IMO Ballast Water Manage-ment Convention Regulations. Based on the US Final Rule on ballast water man-agement, all ships built in or after December 2013 are required to install a BWTS approved by the USCG to prevent the discharge of Invasive Alien Species (IAS) in US waters. In June last year, HHI-EMD was also granted the AMS certification for the Hi-Ballast, an electrolysis-type BWTS of HHI.

BWTSs having the AMS certification can be used for no longer than 5 years from ships’ compliance date that is written in the US Final Rule. HHI-EMD will receive the USCG type approval for the Hi-Ballast and Eco-Ballast systems to satisfy our clients’ higher standards for the economic and ecological solution of BWMS.

CommandantUnited States Coast Guard

2703 Martin Luther King Jr. Ave. SEWashington, DC 20593-7509 Staff Symbol: CG-OES Phone: 202-372-1431 Fax: 202-372-8382 Email: Regina.R.Bergner@uscg.mil

5760 March 4, 2014

Hyundai Heavy Industries, Co., Ltd. 1000 Bangeojinsunhwan-doro, Dong-gu Ulsan 682-792 Republic of Korea ALTERNATE MANAGEMENT SYSTEM ACCEPTANCE The Coast Guard has completed its review of the Alternate Management System (AMS) application submitted by Hyundai Heavy Industries, Co., Ltd. (Hyundai), for the EcoBallast™ ballast water treatment system (BWTS). This letter grants AMS acceptance in accordance with the requirements of 33 CFR 151.2026 for the EcoBallast™ models listed below:

• EcoBallast™-600, -700, and -1000 and associated filter housings, UV reactors, and cleaning unit, with treatment rated capacities (TRC) of 600, 700, and 1,000 cubic meters per hour (m³/hr), respectively, as type approved by the Ministry of Land, Transport and Maritime Affairs of the Republic of Korea under type approval certificate 1-2011, 2-2011, and 3-2011, respectively, issued on March 16, 2011.

• EcoBallast™-360 and -720 and associated filter housings, UV reactors, and cleaning unit, with TRCs of 360 and 720 m³/hr, respectively, as type approved by the Ministry of Oceans and Fisheries of the Republic of Korea under type approval certificate 2013-17 and 2013-18, respectively, issued on September 6, 2013.

The Hyundai EcoBallast™ BWTS is assigned the following AMS identification number:

AMS-2014-Hyundai EcoBallast-001 Coast Guard acceptance of the EcoBallast™ BWTS as an AMS does not accord or imply conformance to or compliance with any other Federal, state, or local water discharge effluent limitations that may apply to the vessel on which the AMS operates or the regulatory regimes and locations within which it operates. The owner and operator of the vessel must comply with all applicable laws, regulations, and treaties, including the Clean Water Act and associated provisions of the Vessel General Permit (VGP); the Federal Insecticide, Fungicide, and Rodenticide Act of 1972, as amended (FIFRA); other Coast Guard safety regulations and requirements; and other applicable laws and regulations. In accordance with 33 CFR 151.2026 (a)(5), the AMS application required the submittal of a type approval application for the BWTS. The type approval information submitted with the AMS application does not have any bearing on the type approval status of the BWTS, nor does

Eco-Ballast Certified by US Coast Guard

After producing its first crankshaft in March 1985, HHI-EMD has built its 5,000th crankshaft for 2-stroke en-gines.

It is one of the critical parts of the engine that converts reciprocating motion of the piston into rotary one. Des-ignated as the world top class product in the year 2003.This crankshaft will be installed in the engine for 19,000 TEU containerships.

Meanwhile, HHI-EMD is scheduled to produce 410 sets of crankshafts for 2-stroke engines this year.

HiMSEN engine that HHI-EMD developed in 2001 reached a new milestone of 8,000 units of accumulated production in February 2014.

HHI-EMD achieved the production of 5,000 units in 2011, ten years since HiMSEN engines were launched. However, HHI-EMD added the production of 3,000 units over the past three years through quality improve-ment, enhanced maintenance and customer service.

HHI-EMD has recently extended HiMSEN engine’s ap-plication into offshore vessels and nuclear power plants.

Production of 5,000th Crankshaft for 2-Stroke Engine

HiMSEN Engine Marks 8,000 Sets in Production

HHI-EMD NEWS I 4

HHI-EMD recently completed construction of Miraflores 80MW engine power plant, where two units of 12K80MC-S engines were installed as prime mover and TCS was applied to increase plant efficiency. HHI-EMD clinched the order from ACP (Panama Canal Authority) in 2012 through intense competition with other world-renowned engineering and con-struction companies. The plant started commercial operation in the beginning of December 2013. Most of electric power generated from the plant will be used for Panama Canal op-eration.

HHI-EMD has also been designated to provide operation and maintenance service for the plant for one year. HHI-EMD attributes it to ACP’s full confidence in its technological ex-cellence and extensive experience in engine power genera-tion solution. HHI-EMD has to date delivered nine 2-stroke engine power plants to its clients around the world, with an accumulated power output of 574MW.

HHI-EMD has also supplied a total of 4,300MW with 1,800 units of HiMSEN engine family for power generation, which has been successfully launched into the world market since 2001. HiMSEN engine family is HHI-EMD’s own exclusive brand incorporating its extensive experience and technical know-how acquired in manufacturing engines for over four

decades. It includes 4-stroke high speed engines, duel fuel engines, natural gas engines and engines of greater capacity tailored to meet diverse market needs. HHI-EMD is recently actively engaged in marketing and sale of Packaged Power Stations (PPS), which is optimized to electric output of 1.7MW per unit and whose engine generat-ing sets are specially designed and modularized for the needs in the Latin American market. HHI-EMD completed a total of 192MW with 113 units of 1.7MW PPS in Ecuador in 2010. The total EPC period for each plant was 150 days which was unprecedented in the history of the engine power genera-tion industry. In addition, HHI-EMD also completed mam-moth engine power plants with PPS solution in Venezuela. They can generate an electricity of 200MW with 118 units of 1.7MW PPS.

In order to meet increasing demand for fuel flexibility and also to tap into the rapidly growing gas and oil industry, HHI-EMD has developed PPS using crude oil as main fuel source. Considering the nature of oil field, diesel engine generating units and all auxiliary equipment have been designed to be fitted into 40 feet containers. Based on this newly developed technology, HHI-EMD is strongly positioned to obtain an or-der from Petroamazonas, an Ecuadorian government owned oil company, for the supply of 16 units of 1.7MW PPS using crude oil as the main source of fuel. Uninterrupted and reli-able electric power supply for oil filed operation is the highest priority for oil and gas industry.

With the newly launched H17/21 type high speed engine (1,680~3,200kW), H46/60 type HFO medium speed en-gine (14,100~25,000kW), H35DF type dual fuel engine (2,880~9,600kW) and H35G type natural gas engine (2,880~9,600kW), HHI-EMD is accelerating its marketing activities all over the world and HHI-EMD’s challenge will never stop.

HHI-EMD’s Challenge in Latin America Continues

New Construction Equipment Plant Completed

On May 28th 2014, HHI-EMD successfully completed commissioning and started commercial operation of the 25MW gas engine power plant comprised of three sets of 18H35/40GV HiMSEN gas engines in the Middle East.

Through the successful commercial operation of the second gas engine power plant using HiMSEN gas engines, HHI-EMD has cemented its position as a global gas engine supplier on top of its good reputation as a engine power supplier.

ENGINE POWER PLANT

Vol.36 July 2014 I 5

HHI-EMD received an order for a 44 MW diesel power plant from Lafarge Cement to supply electric power to the cement factory in Karbala City, Iraq.

This power plant will be composed of 10 sets of 4.3 MW HiMSEN 16H25/33V gen-sets and 1 set of

HiMSEN 9H21/32 gen-set. The division will ship these gen-sets at the end of this year. This power plant is an extension project for the existing one. HHI-EMD provided 12 sets of HiMSEN 9H21/32 in 2011.

Lafarge Cement made its second purchase of HiMSEN diesel generating sets based on HHI-EMD’s excellent product. The division is expecting an increase of sales in Iraq market with optimized design and fast delivery time.

HHI-EMD has so far accomplished the delivery of 520 MW with 224 units of HiMSEN generating sets in Iraq. The division expects that this power plant project will serve to heighten the presence of HiMSEN engines in Iraq.

HHI-EMD’s Engine Power Plant Engineering and Quality Management departments jointly held a spe-

cial training session for vendors on February 19th 2014. This annual session is designed to share HHI’s security and quality management with vendors’ managers.

About 60 attendees joined the session highlighting security priority, safety accidents and quality manage-ment. On this client-oriented training session, the two departments presented the importance of information security at the workshop, providing safety accident case studies and recent quality management practices.

Engine Power Plant Order for Iraq

HHI-EMD Delivered the 70MW EPP to ACP

Security and Quality Training for Vendors

On May 23rd HHI-EMD successfully completed and handed over the 70MW engine power plant which had been ordered on a Turn-key basis from the Autoridad del Canal de Panama (ACP).

Located in the Miraflores Power Plant, this power plant will supply the additional electricity required by the ex-tension of the Panama Canal. Two sets of 12K80MC-S engines have been manufactured and supplied by HHI-EMD with the manpower and technology for the entire process including civil works, installation work and test and commissioning.

HHI-EMD has constructed and delivered numerous die-sel power plants with HHI-EMD’s 2-stroke and HiMSEN

engines in Latin America. With the new 2-stroke diesel power plant in Panama, the heart of Latin America, this power plant is expected to become another example of HHI-EMD’s reliable and fuel efficient power plants.

HHI-EMD NEWS I 6

HHI-EMD has developed a standard model lineup for air compressors to create a new business in the turbo-machinery field.

HHI-EMD launched a 1500-horsepower turbo compres-sor, HTC 1500 in November 2013 which then has been installed in one of HHI’s own utility room. So far, it is currently being under stable operation with good perfor-mance.

Also, additional three sets of similar class compressors were successfully delivered to Hyundai Mipo Dock Yard Company on May 24 which is being under good opera-tion as well.

Moreover, a 2500-horsepower turbo compressor, HTC 2500 was developed with high efficiency, low cost and robust design in February 2014. HTC models have high efficiency by applying a multi-purpose optimal design method. A newly adopted ring rider bearing reduces mechanical loss than a thrust bear-ing. Major components are designed for easy access and

maintenance; Low vibration meets the requirement of API 672 Code. Sound enclosure lowers sound levels. Anti-surge control assures reliable operation.

HHI-EMD will complete the standard HTC series lineup of 130 models by adding HTC600 and HTC900 models at the end of this year. The application range of a new lineup covers 3.630-23,450 m3/h for flow rate and 5.5-10.4 bar (G) for discharge pressure.

New Air Compressors Line-Up

INDUSTRIAL MACHINERY

Vol.36 July 2014 I 7

HHI-EMD completed a vertical-type pump test facility in March 2014. The new test lab will perform tests for HHI-EMD’s verti-cal pumps at various load conditions, improving design capabil-ity and analysis reliability for the industrial pumps.

The lab will test various vertical pumps with specific speeds from 300 to 1,600. These pumps are used to circulate cooling water in power plants, drain, irrigate, and supply seawater in desalination plants.

With the new facility completed, HHI-EMD will meet cus-tomers’ requirements through precise test service, along with the existing horizontal-type pump test facility.

On June 26th, HHI-EMD unveiled its own model of 2,500hp air compressor(Model No. HTC2500) at Ma-chinery Assembly Shop in Ulsan, South Korea.

HHI-EMD has worked on developing a range of air compressors since 2011, and the company gained a foothold in the air compressor market in May 2014 by supplying the complete air compressor package includ-ing three units of 1,500 hp air compressors, a pump and an air dryer to its shipbuilding affiliate, Hyundai Mipo Dockyard (HMD).

An air compressor is a device that converts power into

kinetic energy by compressing air. It is commonly used for a wide range of industrial pur-poses, such as manufacturing cars and operating power, oil and gas plants. HHI-EMD’s newly developed 2,500 hp air compressor model features high compressibility, delicate noise and surge control, and more than 20 years durability.

The world’s largest marine engine maker plans to further expand its air compressor models by completing the de-velopment of 600 and 900 hp models within this year.

With an annual production capacity of more than 200 units of air compressors, HHI-EMD aims to secure USD 13 million worth new orders for this year.

Vertical-Type Pump Test Facility Completed

HHI-EMD Unveils 2,000 HP Air Compressor

HHI-EMD NEWS I 8

HHI-EMD held a technology exchange conference with Asan Medical Center (AMC) from April 3rd to 4th. This conference was in celebration of the second anniversary of AMC-HHI Medical Devices and Robotics Laboratory at Asan Institute for Life Science.

More than 30 doctors and researchers attended this two-day event, including Dr. Park Jin-soo, executive director of Cor-porate Research Institute of HHI and Prof. Kim Song-cheol, director of Medical Engineering R&D Center of AMC.

At this conference, AMC-HHI presented their joint re-search results by demonstrating an interventional treat-ment robot and a rehabilitation robot and discussing tech-nological issues on medical devices and robots.

HHI-EMD showcased the industrial robots at the 16th Seoul Internation-al Manufacturing Technology Show (SIMTOS) from April 9th to 13th, 2014 in Seoul, Korea.

The division demonstrated the han-dling of cylinder blocks and plates by its machine tool robots, HH140G and HH050.

HH140G is a gantry-type robot which can make efficient and bet-ter use of a space in a high posi-tion without other robots’ inference. HH050 is a multipurpose robot with high speed and flexibility.

Technology Exchange on Medical Robot with Asan Medical Center

Robots Displayed in SIMTOS 2014

ROBOT & SYSTEM

Robot Business Unit and Research Institute Held a Unification Congress

On May 23rd, the joint congress was held between Ro-bot Business Unit and Research Institute held at Yongin Research Institute.

About 110 members of robot business units and re-search institute including the former head of HHI-EMD, Mr. Kim Jeong-hwan, senior executive vice president participated at the same congress.

At the congress, Mr. Kim briefed the researchers on the status of its business by introducing the HHI-EMD’s

business environment and goals. The joint congress was designed to strengthen their collaboration.

Vol.36 July 2014 I 9

HHI-EMD Participated in the fair of AUTOMATICA 2014 in Munich. This is one of the biggest fair concentrat-ed on the robot industry. The fair was held during June 3rd to 6th, 2014 in Munich, Germany, and a lot of world-class robot manufacturers, part suppliers, and robot engineering companies also participated in this fair.

HHI-EMD showed 4 kinds of robot models named HS220 which is newly launched model and YS080, HH020, HA006. HHI demonstrated Servo Gun and Vision Sens-ing robot system. Furthermore, HHI displays the big size

photos and videos regarding a lot of robot application know-how with the various kinds of accumulated experience. The visitors are very interested in our upgraded new model and references in European automo-tive industry.

Many visitors had chance to understand Hyundai robots’ ad-vanced technology and brand name through this opportunity.

HHI-EMD received many in-quiry projects from the visitors,

and several companies are interested in being the system integrator of Hyundai robot in their countries such as Ger-many, Netherland, Croatia, Poland, Russia etc.

HHI-EMD has been doing robot business for over 30 years for spot welding, arc welding, handling, palletizing, sealing and etc. HHI-EMD’s robot business is growing sharply every year and HHI-EMD would supply around 6,000 sets of robots this year.

HHI-EMD Participates in Automatica Fair in Munich

The HHI-EMD’s first painting robot developed by Robotics Labo-ratory has recently acquired Explosion-proof Certification from Ko-rea Gas Safety Corporation (KGS).

The YP020-29 system is available for both large and medium-sized painting needs. The mechanism and purge system of this robot are specially designed for work in hazardous environments, such as

painting booths in general, automobile, and standard industries.Furthermore, the hollow wrist and outer arm of this robot are de-signed for the efficient integration of various process equipment and multi-hose routings. Some of the features are as follows.

- Various paint application equipment can be integrated in the verti-cal arm easily and quickly.- A 70mm diameter hollow offset wrist that facilitates mounting of spray equipment. - Reduced paint waste, color change time and cycle time through the integration of the color changer and gear pump close to the ap-plicator.

The two robot systems have been installed in the engine painting process at Hyundai-Cummins Engine Company.

The development success of the painting robots will contribute to further improving the competitiveness of HHI-EMD Robotics in the industrial robot field.

HHI-EMD’s 1st Painting Robot: YP020-29

HHI-EMD NEWS I 10

From May 20th to 21st 2014, HHI-EMD provided training on the operation, maintenance and repairs for eight en-gineers of Sylwin Offshore Platform at Nordic Yards in Germany.

The training was intended to help the engineers better understand the techni-cal characteristics of HiMSEN Engine in order to improve the quality of their repair service as well as to enhance the reliability of our product.

From May 26th to 30th 2014, HHI-EMD provided train-ing on the operation, maintenance and repairs for 24 en-gineers of overseas sub-contractors for drillship engine re-pairs such as MSHS, Jobson Italia, Jing Ming Engineering Enterprise, Hi-Da Marine Service, Oceanlink, RPG and Goltens (Shanghai, Rotterdam, Singapore, and Miami). The training was largely aimed at optimizing the functions of HiMSEN engine H32/40V.

A total of 3,274 engineers have received training in 268 sessions since the opening of the HiMSEN Global Acad-emy in 2006. HHI-EMD is doing its best to satisfy the cus-tomers as a manufacturer of strong and reliable engines.

HiMSEN Global Academy Provided Training for Nordic Shipyard Engineers in Germany

Engineers of Overseas Sub-Contractors for Drillship Engine Repair Service Received Training

CUSTOMER SERVICE

Vol.36 July 2014 I 11

Industrial Robot

Marine Propulsion Shaft Side-ThrusterLCD Handling Robot

Cargo Oil Pump

4-Stroke Diesel Power Plant

Packaged Power Station

Propeller4-Stroke Diesel Engine Crankshaft 4-Stroke Diesel Engine

Cylinder Liner

2-Stroke Engine Turbocharger

2-Stroke Diesel Engine Crankshaft2-Stroke Diesel Engine

2-Stroke Engine Cylinder Frame

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.

2011 2009

2008

2007

20042006

2003 2002

HHI-EMD, 15 World Top-Class Products

HiMSEN H35DF Reference ListShipowner Shipyard Vessel (Q’ty) Ship Type Engine Type Delivery

UASC

HHI 3

14K CNTR 9H35DF×4

2014

HSHI

1 2014

5 2015

2 2016

HHI 2

18K CNTR 9H35DF×3 + 7H35DF×2

2015

HSHI2 2014

1 2015

KNUSTEN HHI 2 173K LNG 7H35DFx2 + 6H35DFx2 2015