Hyundai Heavy Industries (HHI), the world’s largest shipbuilder, announced today that it signed a memorandum of understanding (MOU) on establishing a partnership in the smart ship sector with the National Shipping Company of Saudi Arabia (Bahri).

The signing ceremony of the MOU was attended by Chung Ki-sun, Executive Vice President of Corporate Planning Office of HHI, An Kwang-hean, CEO of Hyundai Global Service, and Ali Al Harbi, CEO of Bahri.

Under the MOU, the two companies will jointly develop smart ship solutions and apply them to ships operated by Bahri that currently operates 37 VLCC.

Smart ship technology is a system that helps ships’ efficient operation by using information and communication technology (ICT) and big data. HHI developed the smart ship technology in 2011 for the first time in the world and has applied the system to about 300 ships it delivered so far.

Hyundai Global Service that was split from HHI in December last year will take the lead in developing the technology that will allow ship owners remotely monitor and control a ship’s machinery status including engines and generators, and informs repair status and period in advance.

Chung Ki-sun said, “The MOU is significant in that HHI and Bahri, leaders in the global shipbuilding and shipping sector, are teamed up with in preparation of Fourth Industrial Revolution era. We will exert our efforts to lead our respective markets by creating synergy of our shipbuilding expertise and Bahri’s fleet management know-how.”

HHI and Bahri have long been close business partners. Bahri has order a total of 34 ships to HHI Group so far and the two companies are currently closely cooperating in developing King Salman Global Maritime Industries Complex in Saudi Arabia.