Korean marine engine maker STX Heavy Industries has officially been rebranded as HD Hyundai Marine Engine under the umbrella of HD Hyundai.

At a shareholders' meeting held on Tuesday, all proposed agenda items were approved, including amendments to the articles of association, a name change and the election of new directors.

President Kang Young, appointed as the first CEO, brings a wealth of experience from his tenure at HD Hyundai Heavy Industries, where he joined in 1992. He has held various key positions, including accounting officer, head of management support, head of business and head of finance. According to the company, his extensive background positions him as the ideal leader to ensure efficient investment and financial stability for HD Hyundai Marine Engine.

The rebranding and launch of HD Hyundai Marine Engine comes with ambitious plans to advance engine technology and expand the company’s production portfolio. The global marine engine market, projected to grow to approximately 15 trillion won ($10.8 billion) by 2030, offers significant opportunities for the company to assert its leadership.

A strategic focus will be on leveraging HD Hyundai Marine Engine's advanced crankshaft production technology and integrated turbocharger systems to localize key components and enhance cost competitiveness. These efforts are expected to create significant synergies with HD Hyundai Heavy Industries, a global leader in the marine engine sector.

HD Hyundai has restructured its marine engine production into three specialized entities to better address the increasing demand and stringent environmental regulations. These entities include HD Hyundai Heavy Industries for large ship propulsion engines, HD Hyundai Marine Engine for small and medium ship propulsion engines, and HD Hyundai Engine for power generation engines. This reorganization aims to maximize production efficiency and responsiveness to market needs.

The three companies will collaborate closely to enhance their competitiveness in eco-friendly engine design through shared technological innovations. For example, by pooling their research and development efforts, they can accelerate the creation of engines that meet stringent emission regulations. They will also leverage their combined overseas distribution networks to boost export sales.

“Investing in eco-friendly engines is key to decarbonizing the shipping industry, and our innovative technology will keep us ahead in the global arena,” said an HD Hyundai official.

HD Hyundai is set to finalize the acquisition of STX Heavy Industries on Wednesday. HD Korea Shipbuilding & Offshore Engineering, an intermediate holding company in the shipbuilding sector, will acquire a 35.05 percent stake in STX Heavy Industries through a combination of old and new shares.