HD Construction Equipment signs W160b engine supply deal with US power firm

HD Construction Equipment announced Tuesday it has signed a contract to supply 22-liter gas power generation engine long blocks to Power Solutions International (PSI), a North American power generation and engine solutions company. The two-year deal, running from next year, is valued at about 160 billion won ($118 million).

PSI provides customized power supply systems for data centers and a range of industrial infrastructure sites across North America. The company plans to incorporate HD Construction Equipment's engine long blocks into its power generation systems for deployment at those sites.

HD Construction Equipment had already secured a 390 billion won order for gas power generation engine long blocks last month. With this latest deal, the company has now signed cumulative supply contracts worth 560 billion won in North America within a month.

The power generation market is expanding as surging electricity demand from AI data center growth drives investment. According to market research firm Market Data Forecast, the North American generator market is projected to grow from about $9.41 billion this year to about $13.02 billion in 2034, a compound annual growth rate of 4.14 percent.

HD Construction Equipment is stepping up its push into the North American market on the strength of its power generation engines. The engines have drawn attention as a power solution for data centers thanks to their short lead times, fast installation and the flexibility to scale operations up or down as electricity demand shifts.

"Through a series of large-scale supply contracts, we have again demonstrated the technological capability and reliability of our engines," a company official said. "We will continue to aggressively pursue the rapidly growing power infrastructure market and expand our business."

Meanwhile, HD Construction Equipment has built out a production system for 1- to 3-megawatt-equivalent ultra-large power generation engines centered on its new Gunsan engine factory, which was completed last month. The new facility can produce up to 1,250 such engines per year.