Hyundai Heavy Industries has signed a memorandum of understanding with Saudi Aramco and other companies to build a plant for the manufacture of engines used in maritime and primary power applications.

The Hyundai Heavy-Aramco consortium has said it will spend $400m to set up the facility to produce engines and engine parts in Ras Al-Khair, in eastern Saudi Arabia, by 2019.

Hyundai Heavy's HiMSEN engine is a medium-sized engine developed in 2000 for ship propulsion and power generation that could expand its presence in the global marine engine market following the deal.

Globally, the HiMSEN engine already accounts for 22% of the medium-sized engine market, and is exported to 40 different countries.