VOL. 16 June www.hhi.co.kr www.hyundai-engine.com

HYUNDAI HEAVY INDUSTRIES CO., LTD. ENGINE & MACHINERY DIVISION

HiMSEN EngineShowcased atExposhipping Europort

2007

T he Engine & Machinery Division of HyundaiHeavy Industries (HHI-EMD) marketed and

promoted its HiMSEN engines and marine cargopumps while participating in the international marineexhibition of the 9th Exposhipping Europort Eurasia,held in Istanbul, Turkey, from April 25th to the 29th,2007.

A total of 522 marine companies, including 165local Turkish companies, were presented at theexhibition. HHI-EMD’s main competitors, MaK,MAN Diesel, Yanmar, and Wärtsilä aggressively

marketed their own products to Turkish shipownersand shipyards.

HHI-EMD teamed up with their Turkish sales agent,Gani Ship Spares to promote its HiMSEN enginesand cargo pumps. Many visitors to HHI-EMD’sbooth were impressed, recognizing that HiMSENengines were developed with the technology,performance and reliability of Hyundai HeavyIndustries, the world’s largest marine engine builder.

At the exhibition, HHI-EMD signed a contract for 12sets of 9H25/33P HiMSEN propulsion engines for

HHI-EMD NEWS02

HiMSEN Engine Showcased at Exposhipping Europort

6,100dwt and 13,000dwt tankers for Sahin CelikShipyard. The contracts were signed in front of manycustomers and the Turkish press. The Sahin CelikShipyard also showed a deep interest in Hyundai’shydraulic submerged pumps for its 13,000dwt tankers,and discussed technical issues in installing the pumps.

HHI-EMD signed two further contracts during theexhibition, one for two sets of 9H25/33P propulsion

engines for Akbasoglu Shipping,and the other for one set of8H25/33P propulsion engines forKoymen Shipping.

With its success at the exhibition,the number of HiMSEN enginesordered by the Turkish market isnow up to 36 sets, evidence thatthe reliability of HiMSEN engines

is recognizedby Turkishcustomers.

With thischance toi n t r o d u c eH H I - E M Dand HiMSENengines to

potential Turkish customers, HHI-EMD continues itsefforts to increase sales of HiMSEN engines in theTurkish marine engine market.

HHI-EMD held its 2nd Diesel Forum with NYK,one of HHI's best customers, on March 27th,

at the HHI shipyard.

The improved reliability of Hyundai-suppliedengines, along with HHI-EMD's sustained efforts incustomer relations, has been well-received byNYK. HHI-EMD actively responds to customers'needs by providing new technical information, andby presenting causes and counter-measures forpossible problems with their marine engines.

The diesel forum, managed by the Engine DesignDepartment, is to be held with as many shipownersas possible, including : NYK, A.P. Moller, HanjinShipping, and Hyundai Merchant Marine. This ispart of HHI-EMD's plan to improve customersatisfaction and build better customer relationships.

Diesel Forum withJapanese shipowner NYK

03VOL.16 June 2007

4-Stroke Diesel Engines2-Stroke Diesel Engines

HHI-EMD successful lycompleted a trial run with

the world's largest electronically-controlled marine engine, theHYUNDAI-Wärtsilä 14RT-flex96C.The trial was viewed by officialsrepresenting the shipowner andthe classification societies at HHI'sengine shop on May 29th.

The 14RT-flex96C engine has 14cylinders and a maximumcapacity of 108,920 bhp, making itthe world's most powerful marineengine. It will be equipped in8600TEU containerships forHyundai Merchant Marine Co.,Ltd.

The RT-flex engine uses acommon rail system to reduce fuelconsumption at low speeds, andNOx emissions are reducedthrough electronically-controlledfuel injection. It is equipped withremote speed-control, a safetymonitor, and an observationsystem.

HHI has played a large role in thetrend towards larger sizedcontainerships by building theworld's first and largest 98cmbore-cylinder marine engine, theHYUNDAI-MAN B&W 7K98MC inAugust, 1999, and the world's firstand largest electronically-controlled marine engine, theHYUNDAI-MAN B&W 12K98MEin January, 2000.

HHI-EMD has maintained itsposition as the world's largestengine maker, taking up about 35percent of the global enginemarket since 1988. HHI has anannual capacity to produce 11million bhp low-speed (2-stroke)marine engines and 4 million bhpmedium-speed (4-stroke) marineengines.

HHI-EMD will mark a productionmilestone of 70 million bhp low-speed marine engines this year,becoming the first company toreach this milestone.

HHI-EMD has recentlyreceived an order from

Jiangsu Yangzijiang Shipyard inChina to supply 24 sets of8H25/33 HiMSEN engines for six4250TEU containerships.

HHI-EMD also signed contractswith the Shanghai Shipyard tosupply twenty-four sets of 6H17/28HiMSEN generating engines, to beinstalled in 57,000dwt bulk carriers;12 sets of 5 & 7H21/32 HiMSENengines for 5000-unit Pure Car &Truck Carriers (PCTC); and 4 setsof 8H25/33 HiMSEN engines to bemounted on a floating crane bargefor ZPMC.

HHI-EMD had already secured anorder for main engines from theYangfan Shipyard at the end ofMarch, which led to a packagedeal for these HiMSEN engineorders for 5000-unit PCTCs.

These orders have greatsignificance with regards todeveloping potential markets. HHI-EMD had no prior businessrelations with these shipyards, withthe exception of the ShanghaiShipyard, and HHI-EMD expectsto secure additional orders forforthcoming projects throughestablishing and maintainingfriendly relations with theseshipyards.

Big Order forHiMSEN Enginesfrom ChineseShipyards

World's Most Powerful MarineEngine Runs Successful Trial

2-Stroke Diesel Engines

HHI-EMD NEWS04

Cuban ApprenticesJoin Spring Rally &Soccer Match

HHI-EMD held a friendlysoccer match versus Cuban

apprentices on April 21st, 2007.The apprentices are taking theExpert Skills Course at theHiMSEN School in order to workas part of the core staff atpackaged power stations in Cuba,in charge of maintenance, repairs,and operation.

After the soccer match, theyenjoyed time together at theHanmaum Center, strengtheningfriendships.

A week earlier, HHI-EMD's staffhad gone hiking in Gyeongju withthe 20 Cuban apprentices duringthe EMD Spring Rally, held onApril 14th.

Although hiking in the mountainswas new and difficult for theCubans, everyone reached thetop of the mountain and had agood time.

HHI-EMD signed a contractwith Yangfan Shipyard in

Xhoushan, China to supplytwelve main propulsion engines(including eight engines foroptions), to be fitted in 5000-unitPCTCs, ordered by TB Marine

of Germany.Earlier this year HHI-EMD alsowon an order from the XiamenShipyard in China to constructfourteen marine engines. Asmore vessels are built inChinese shipyards, engine

demand is expected togrow.

The ordered engines willbe delivered between2008 and 2009. Thiscontract will helpstrengthen ties betweenthe two companies.

Marine Engines Ordered byYangfan Shipyard

The prime minister of Iraq,Nouri al-Maliki, visited

Hyundai Heavy Industries (HHI)and met with Mr. Min Keh-sik,HHI's vice-chairman and CEO,and Mr. Choi Kil-seon, presidentand CEO of HHI, on April 10th.

After touring in the shipyard,

Prime Minister Maliki and HHI'sCEOs discussed their interest ineach other's countries at aluncheon at HHI's Guest House.

Prime Minister Maliki expressedparticular interest in the rapidgrowth of HHI over such a shortperiod of time and invited HHI toparticipate in Iraqi reconstructionprojects.

HHI has an order for 30Packaged Power Stations(PPS) and expects to getadditional PPS orders from Iraqin the near future.

The Prime Minister of Iraq Visited

HHI

4-Stroke Diesel Engines

05VOL.16 June 2007

HHI-EMD signed a contractwith the Kurdistan Regional

Government in March, 2007, worth$32 million. Under the contract, 301.7MW Packaged Power Stations(PPS) will be delivered and installedat Sulaymaniyah to help meet thedemand for electric power. It will be

the first stage of a 300MW powerproject.

The PPS is a movable generatingfacility using a HiMSEN 9H21/32engine. The generator, engine andeverything else is arranged inside a40 ft long container. The PPS

makes it possible to save oninstallation costs, minimize theinstallation period, lower operation &maintenance costs, and can also beeasily transported to places wherethere is a demand for electricpower.

Another feature of the PPS is that itis designed for the base loadoperation with HFO and DO,achieving power generation atminimum costs.

When Nouri al-Maliki, the primeminister of Iraq, visited HHI in April,he had a great deal of interest in thePPS, expressing his intention to buylarge quantities of them. He alsorequested that HHI take an activepart in the rehabilitation project afterthe war. Additional orders areexpected from the Middle East,including Iraq, thanks to thisopportunity.CUBA Revolution Eneretica

HHI-EMD signed a contractwith Shanghai Shipyard on

May 28th, 2007, to supply 4 setsof HYUNDAI-MAN B&W7K90MC-C main engines and 16sets of HYUNDAI-HiMSEN7H25/33 diesel generating sets.They will be installed in four3600TEU containerships orderedfrom Shanghai Shipyard byGerman shipowner Thomas Schulte.

These engines will be delivered between July of2009 and May of 2010. With this project, HHI-EMD

will have supplied ShanghaiShipyard with 34 sets of 2-strokemain engines and 168 sets ofHiMSEN diesel generatingengines since 2001.

This order was agreed to byThomas Schulte, who expressedconfidence in the quality andperformance of Hyundai's

engines. Further orders for HHI-EMD engines areexpected from Shanghai Shipyard, as well as otherChinese shipyards, in the future.

Additional Engines for Four 3600TEU ContainerVessels Ordered by Shanghai Shipyard

An Order for Packaged Power Stations from the

Kurdistan Regional Government

HHI-EMD NEWS06

HHI-EMD secured anorder for 32 HiMSEN

large bore model 6H32/40(3000kW at 720rpm) dieselgenerating sets, HHI-EMD'sfirst order for this model ofengine.

The engines will be installed ineight 8600TEU containershipsordered by Canada's Seaspan

Corporation. Theengines will bedelivered from Mayof 2009.

The new HiMSENH32/40 diesel enginewas developed inDecember, 2006.The engine's powerranges from

3000kW, with 6 cylinders, to4500kW, with 9 cylinders, at720 or 750 rpm.

Although this is the first orderfor this engine, HHI-EMDexpects many new orders willfollow in the sectors of marinediesel generators, propulsionengines, and stationary dieselpower plants.

The First Order forHiMSEN Large Bore Engine H32/40

4-Stroke Diesel Engines

Main Engines and GenSetsOrdered by SUNGDONG

HHI-EMD has recently received anorder for 4 sets of HYUNDAI-MAN

B&W 7S50MC-C main engines (15,040bhp at 127 rpm) and 12 sets of HiMSEN6H17/28 generating sets (690kW at 900rpm). The orders were placed by SungdongShipbuilding & Marine Engineering, a newshipyard located near the TongyeongNational Industrial Complex.

These engines will be installed in91,800dwt bulk carriers ordered fromBlenheim, in England, and Songa, inSingapore, from May, 2008 to April, 2009.

Sungdong Shipbuilding had manufacturedand supplied mega-blocks for ships beingconstructed by Samsung Heavy Industriesbefore building ships themselves in 2005.The shipyard has kept its order backlog ofabout 70 ships and is building the ships ontheir technical expertise.

HHI-EMD completed themodel certification test for

the COP turbine model CSV-14with a capacity of 1400kW at1510 rpm. This model has beendeveloped based on EMD's owndesign, under the witness ofDNV Classification Societies.

Until now, HHI-EMD hadmanufactured the COP turbines

through a technical licenseagreement with a Japanesecompany. Exporting EMD's COPturbines to overseas marketshas been almost impossible dueto the territorial restrictions of thelicense.

With the DNV approval, HHI-EMD can now market and exportits COP turbines overseas.

Classification Approval for COP Turbine(Model: CSV-14)

Cargo Oil Pump Turbine

A trial run was successfullycompleted for the first manufacturedHyundai Cargo Oil Stripping Pump(COSP) model CSP-200 on April30th, 2007. The test was performedunder the watch of classificationsocieties including ABS.

The COSP will be installed in the firstof eight 75,000dwt tankers beingbuilt for Greek shipowner DOLCO.These eight tankers are underconstruction at SungdongShipbuilding & Marine Engineering.

These pumps had been importedfrom Japan, but now that HHI-EMDhas successfully completeddevelopment of its own model,delays due to delivery and costincreases can be eliminated.

Compared to existing COSPmodels, HHI-EMD's newlydeveloped product has simplerconstruction, leading to superiorperformance and better quality. TheCSP-200's capacity is 200 / hourat 25 stroke/minute.

Successful Trial Run for theHyundai Cargo Oil Stripping Pump (Model: CSP-200)

On May 9th, 2007, CarterCryogenics and HHI signed alicense agreement for themanufacture and sale of LNGcarrier cargo pumps. Theagreement was signed by Mr.Lance Schroeder, vice president of

Carter Cryogenics, and Mr. ChoeWeon-kil, senior executive vicepresident & COO of HHI-EMD.

The signing ceremony was held atHHI-EMD's office in the presenceof Mr. Rod Keen, executive vice

president and general counsel &secretary of Argo-Tech, Mr. Jean-Marc Artaud, director of SNECMA,and Mr. Kim Jeom-ho, senior vicepresident of HHI. The participantspromised mutual benefits throughtechnology exchange.

The LNG carrier cargo pump is acryogenic pump at the bottom ofthe cargo carrier, submerged inLNG, which discharges the cargo.Generally eight to ten pumps aremounted on every LNG carrier.

By signing the license agreementwith the LNG pump inventor, CarterCryogenics of the USA, HHI-EMDcan deliver the pumps to customersat a more competitive price.Hyundai's name value will increasedue to their handling of thesespecial cryogenic pumps.

License Agreement Signed with Carter Cryogenics for

LNG Carrier Cargo Pump

Pump

07VOL.16 June 2007

HHI-EMD, in collaboration with the Korea National

Oil Company (KNOC), has succeeded in

developing the world's second cable-free electrical

submersible pump. The pump is designed to transfer

crude oil from underground crude oil stores.

This type of pump had been produced exclusively by aNorwegian company. With this development, HHI-EMDcan localize this pump, contributing to the growth ofKorea's pump industry. HHI-EMD also expects topromote export of this pump in the overseas market,especially in China and India.

After two years of research and development, HHI-EMDhas conducted on-site operation verification tests overone year in a KNOC storage facility. Through this test,HHI-EMD demonstrated the pump's reliability andperformance.

The new pump is designed to supply power throughconnected copper pipes, unlike cable-type pumps. Itfeatures easy installation through the stacking of everypipe element. It also requires only a small installationspace, and has excellent cooling and insulationproperties thanks to the circulation of cooling oil and thefact that the copper tubes are equipped with insulatingplastic. These features can reduce the costs and timeneeded to construct an oil storage base.

"The new pump development will helpmake our industrial pump businessmore competitive in domestic andglobal markets. We are also planningto apply this technology to varioustypes of seawater lift-pumps foroffshore oil facilities, such as offshoreoil production units." said an HHI-EMDofficial.

HHI first produced industrial pumps in1978. Since then they havesuccessfully produced many types ofindustrial pumps, including the

hydraulically driven submerged cargo pump, the mainfeedwater pump for thermal power plants, the verticalvariable-pitch vane pumps, and the cargo oil pump forcrude oil tankers.

Some of the new cable-free electrical submersiblepump's specs include:

4 Pole/3 Phase/1,900kW-class oil cooledinduction motor integrated submersible pump- Regular voltage: 3,300V- Flow rate: 4,250 /h- Total differential head: 130m

Power supply and cooling oil circulation system- Total length of connected power piping systemfrom ground: 104.5m

- Rated current: 500A- Oil supply pressure: 20 Bar

HHI-EMD Develops a Cable-Free Electrical SubmersiblePump to Transfer Crude Oil

HHI-EMD NEWS08

Pump

Robot

09VOL.16 June 2007

O n Feb. 12th, 2007, HHI-EMD successfully completed thefunction test for their first side thruster, which has a

capacity of 2,000kW. The side thruster will be installed in a145,700 LNG carrier for Korea Line Corporation (KLC),currently being constructed at Daewoo Shipbuilding & MarineEngineering.

The test was performed in the presence of representatives fromthe shipbuilder, shipowner, and classification societies. After thetest all of the participants expressed their satisfaction with theresults and the performance of the product.

HHI-EMD completed development of the side thruster in April,2005. The side thruster is a propeller-device used to change thevessels' direction. HHI-EMD has more than 30 side thrusters inits order backlog.

Function Test forthe First LNG SideThruster

HHI-EMD has successfullypassed the CE Compliance

Tests and obtained CEcertificates for three new modelsof robots (Models : HA006,HA020 and HA010L).

The "CE" Certificate is a safety-related certification that should beobtained in order to export anyproducts to the European market.Based on previous CEexperience, HHI-EMD completed

the CE compliance test for thenew robots quickly and easily.

The new CE-certified robots willbe delivered to the robot-systemproject at Hyundai MotorCompany's Czech plant. The CE-certification of all Hyundai robotswill increase HHI's robot sales inthe European market.

HA006 HA010L HA020

New Hyundai Robots ObtainEuropean "CE" Certificate

HHI-EMD NEWS10

Robot

H yundai Motor Company (HMC) awardedHHI-EMD's Robot System Business

Unit its large-scale robot-system projects forboth a new Czech plant and its Beijing No. 2plant. HHI-EMD will provide a total of 600robots and peripheral devices, performingdesign, installation, and testing on a turnkeybasis.

HHI-EMD, through the bid evaluation process,was chosen by HMC as the most reliable andcost-effective bid. HHI-EMD was previouslyawarded HMC's Slovakia project and earnedHMC's appreciation for its successful andtimely completion.

HHI-EMD has already supplied more than12,000 industrial robots to domestic andinternational markets, including Asia, Europe,and the Middle East. HHI-EMD expects thatthis latest projects will trigger further expansionand penetration of foreign markets.

Orders of Large Scale

Robot SystemProjectsfrom Hyundai Motor Company

Successful Completion ofKIA Motors' HwaseongPlant Assembly ConveyorProject

H HI-EMD has successfully completed the KIA

Motors' Hwaseong plant conveyor modernization

project. They replaced the existing chain-type conveyor

with HHI's own platform-type conveyor.

The new platform conveyor is equipped with a

mechanical lifter and an electric monorail system. It has

automatic lifter-height control, is quiet, and vibration free.

After the project's successful completion, KIA Motors

expressed its appreciation. HHI-EMD expects its high-

tech conveyor system will now have better opportunities

and a better reputation in foreign markets, especially in

Asia and the Middle East.

11VOL.16 June 2007

AS

H HI-EMD's weeklong HiMSENEngine-Factory Training

Course for its parts-sales dealersbegan on May 28th, 2007. Thisspecial program was designed toprovide parts-sales dealers withtechnical knowledge and fieldservice experience for HiMSENengines so that they can meetevery request made by clients.

The participating local and foreignparts-sales dealers took the trainingcourse both in class and atassembly & test shops. During theirshort stay they also saw Hyundai's

facilities, new vessels being built,and other products including bigdiesel engines.

All participantswere certifiedafter completingthis course. Thiscertification willassist themboth in partssales and inp r o v i d i n gt e c h n i c a lsupport toclients.

HHI-EMD will hold similar trainingseminars for parts-sales dealerstwice a year in the future.

HiMSEN Engine-Factory TrainingCourse for Parts-Sales Dealers

A Diesel Service Forum washeld at Hyundai Hotel

Gyengju on April 27th, 2007, inthe presence of representativesfrom shipowners andshipbuilders.The forum was hosted by theEngine CS Department of HHI-

EMD and focused on majortechnical matters such ascylinder-liner problems,e lec t ron ica l l y -con t ro l l edengines, before-serviceactivities for recall services, andspare parts sales activities. Theforum elicited positive

responses from the participants. HHI-EMD is going to regularizethis forum in Korea, Europe andSouth-East Asia to strengthenits service to customers. HHI-EMD plans to hold this year'sEuropean forum in October.

A Diesel Service Forum for Customer Satisfaction

HiMSEN, Hyundai’s in-house developed marine diesel engine, is designed to be highlypractical for user and environmentally friendly for the future. So far, over 2,500 sets ofHiMSEN engines have been ordered from the well-known shipowners and power plantowners which shows HiMSEN engines get into the spotlight from all over the world.

Also, Hyundai serves its esteemed global customers with high-tech marine cargo oilpumping system such as cargo oil pumps, hydraulically driven submerged cargo &ballast pumps, thrusters, and so on, which have been developed by Hyundai'stechnical know-how accumulated from continuous R & D efforts and experience morethan 10 years of producing cargo oil pumps and water ballast pumps.

Engine Sales Dep’t1, JEONHA-DONG, DONG-GU, ULSAN, KOREATel : +82 52 202 7281Fax : +82 52 202 7427E-mail : k150@hhi.co.kr

Hyundai Heavy Industries Co., Ltd.Engine & Machinery Division

Optimal marine diesel engines and cargo oil pumping systemsolutions to cope with changes in market and customer’s needs.

Pump Sales Dep’t1, JEONHA-DONG, DONG-GU, ULSAN, KOREATel : +82 52 202 6191Fax : +82 52 202 6190E-mail : pump@hhi.co.kr

Cargo Oil Pump ThrusterSubmerged Cargo Pumping System Steam Turbine

HiMSENHiMSEN

Marine PumpMarine Pump

www.hyundai-engine.com