Ulstein and Hyundai sign agreements

Ulstein Bergen AS and Hyundai Heavy Industries have signed two separate agreements covering the manufacture of Ulstein's engines in South Korea and the joint development of a new engine.

The agreements will open up new markets previously closed to Norway-based Ulstein, and will also give Hyundai the chance to move away from the manufacture of engines under licence.

Under the first agreement, Hyundai will manufacture current designs of Ulstein Bergen engines under licence in South Korea for power generation and marine applications. The second agreement will lead to the joint development of a completely new medium speed engine.

Ulstein Bergen will initially supply complete engines to Hyundai, and will later ship out parts for assembly in South Korea. Hyundai will eventually manufacture the engines completely in South Korea. Hyundai has only ever produced engines under licence and the development of a completely new engine is therefore a new venture for the company.

Development work on the new engine is expected to take around three years. Work on this project will be carried out largely in Ulstein's Bergen facility, with the final product being manufactured both in South Korea and Norway. No technical details have been released on this project.

Ulstein does not expect the licence agreement to reduce the company's engine production at its Bergen facility. It believes that new markets previously closed to the company will become available.