HD Hyundai Electric (267260.KS) is joining forces with LG CNS (064400.KS) to strengthen its competitiveness in data center power infrastructure and smart manufacturing.
HD Hyundai Electric said on the 16th that it signed a memorandum of understanding with LG CNS for cooperation on data center power infrastructure and smart factory construction. The agreement was signed on the 15th at the HD Hyundai Global R&D Center in Seongnam. The companies aim to find new business opportunities and raise their competitiveness by combining HD Hyundai Electric's technology spanning power equipment and distribution systems with LG CNS's data center design, construction and operation capabilities as well as its digital expertise.
In the artificial intelligence data center segment, the two companies will build a system to supply HD Hyundai Electric's power and distribution equipment in package form. They will also jointly propose projects and conduct marketing targeting power infrastructure markets at home and abroad. The companies will explore ways to improve the efficiency of data center power operations by applying LG CNS's AI, cloud and data technologies to HD Hyundai Electric's power monitoring platform.
In smart manufacturing, HD Hyundai Electric will provide field data it holds to LG CNS for use in manufacturing AI technology, logistics automation systems and process automation. Through technology exchanges and demonstration projects, the two companies will raise the automation rate for production and logistics at the Cheongju distribution campus and build an integrated equipment monitoring system to improve smart factory manufacturing competitiveness. They also plan to transplant the verified data-based smart manufacturing model to production bases overseas, including in the U.S., to standardize operating standards across sites.
"This agreement will serve as an opportunity to create new business opportunities by combining power infrastructure with digital technology," said Kim Young-ki, chief executive of HD Hyundai Electric. "Through cooperation with LG CNS, we will improve the operating efficiency of data center power infrastructure and expand business cooperation to secure future growth drivers."
Hyun Shin-kyun, chief executive of LG CNS, said the companies will "create synergy in data center power infrastructure and smart manufacturing by combining the specialized capabilities of both sides." He added, "Based on AI, cloud and data technologies, we will support the digital transformation of manufacturing sites and broaden the scope of cooperation between the two companies to create business opportunities together in global markets."