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Shipping & Shipbuilding

Hyundai Heavy partners with Palantir for big data platform

To set up platform for Hyundai Heavy Industries Group first and establish JV for its commercialization of big data solutions

By Jan 05, 2022 (Gmt+09:00)

Hyundai Heavy Industries Group signs a MOU with Palantir Technologies to build a big data platform on Jan. 4 in Las Vegas. The group’s heir apparent Chung Ki-sun (on the right in the front row), Palantir’s COO Shyam Sankar (on the left) and Palantir CEO Alexander C. Karp (in the video in the upper center of the photo) attend the signing ceremony. (Courtesy of Hyundai Heavy Industries Group)
Hyundai Heavy Industries Group signs a MOU with Palantir Technologies to build a big data platform on Jan. 4 in Las Vegas. The group’s heir apparent Chung Ki-sun (on the right in the front row), Palantir’s COO Shyam Sankar (on the left) and Palantir CEO Alexander C. Karp (in the video in the upper center of the photo) attend the signing ceremony. (Courtesy of Hyundai Heavy Industries Group)

South Korea’s Hyundai Heavy Industries Group joined forces with US data analytics firm Palantir Technologies Inc. to set up a big data platform for the world’s top shipbuilder and establish a joint venture for its commercialization.

Hyundai Heavy and Palantir on Jan. 4 signed a memorandum of understanding (MOU) to build a big data platform for the group’s core businesses including shipbuilding, offshore engineering, energy and industrial machinery. They also agreed to found a JV to promote the big data platform business in the mid-to-long term, according to Hyundai Heavy.

“We expect that this partnership with Palantir Technologies will substantially improve the competitiveness of core businesses of the group,” said the group’s heir apparent Chung Ki-sun, who is in Las Vegas for the Consumer Electronics Show (CES) 2022.

“It will be an important turning point in innovation of organizational culture that changes the way we work using data,” said Chung, president and CEO of both Hyundai Heavy Industries Holdings Co. and the group’s intermediate holding company Korea Shipbuilding & Offshore Engineering Co. 

The group has been taking steps to transform itself as a platform business in the global shipbuilding sector.

Hyundai Heavy will provide process expertise and sales know-how of its affiliates while Palantir will offer software and development personnel. Palantir, established by PayPal co-founder Peter Thiel, Nathan Gettings and others in 2003, is a software company that specializes in big data analytics.

Once the big data platform for each affiliate is built, the two parties will create a JV that specializes in developing and selling big data platform services. Based on the accumulated achievements, the JV will commercialize big data solutions from platform construction to operation to generate sales targeting domestic and foreign companies in the shipbuilding, refining, petrochemical, machinery and other manufacturing sectors.

“Since the shipbuilding sector is the least standardized industry, a successful establishment of a big data platform for the sector would be sensational for the entire manufacturing industry,” said an industry source.

SENSATIONAL

Hyundai Heavy Industries Holdings, a shipbuilding and offshore engineering affiliate of the group, is working on the “Future of Shipyard (FOS)” project to transform itself into a smart shipyard, the first of its kind in the world, by 2030. All processes from design to production are connected in real-time to build a shipyard that enables smart work management where Palantir Technologies’ big data platform is applied.

The group’s energy affiliate Hyundai Oilbank Co. will also adopt the big data platform. The refiner, which has attracted $20 million in investment from Palantir, plans to build a platform at its complex in Daesan, South Korea, for five years from 2022 with a strategy to maximize process efficiency by integrating more than 100 production management systems into one.

Hyundai Doosan Infracore Co., an affiliate of industrial machinery, already developed “DI 360,” a big data collaboration platform, with Palantir in 2019, and is currently using it to manage its parts supply chain, handle on-site quality claim issues, and seize sales opportunities.

The group and Palantir will consider building a platform for other affiliates, such as Hyundai Construction Equipment Co.

Write to Jung-hwan Hwang at jung@hankyung.com

Jongwoo Cheon edited this article.
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