Samsung Heavy Industries Co., one of South Korea’s three major shipbuilders, is set to establish a research and development (R&D) center in Busan with an aim to develop it as a base for offshore plant design and engineering.

Samsung Heavy Industries signed on Monday a memorandum of understanding (MOU) with the Busan Metropolitan City for the establishment of the Busan R&D Center, according to the company. Under the agreement, the shipbuilder will invest 4.8 billion won ($3.72 million) to establish a 1,700-square-meter R&D center in Busan by November.

The shipbuilder plans to foster the Busan R&D Center as a base for design and research and establish a cooperative system with its main Geoje Shipyard, Pangyo R&D Center and Daeduk Research Center. In particular, the company plans to enhance its R&D capabilities to increase profitability by expanding orders for high value-added products, such as liquefied natural gas (LNG) carriers as well as for the offshore plant business.

The company is also planning to hire experts in the fields of ship structure, design, electrical equipment, and device design, and more than 200 people, including employees from partner companies, will work at the center by 2024, according to an official from the company.

“I am delighted to share the challenge of becoming a world-class shipbuilding and marine company with Busan City,” said Jung Jin-taek, president and chief executive officer of Samsung Heavy Industries. Busan Mayor Park Heong-joon responded by saying that “Busan City will actively support companies and local economies so that they are not hampered by unnecessary regulations.”

Earlier, Samsung Heavy Industries signed an agreement with Pusan National University for digital transformation, manufacturing innovation and securing a specialized workforce. The two sides agreed to cooperate on technology exchanges in the eco-friendly and digital ship industry and fostering professional talents.

By Seong Seung-hoon and Yoon Yeon-hae

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