The new entity named "Hyundai E&T" will be launched in early January 2014, the shipbuilder said in an e-mailed statement.
Mipo Engineering will be incorporated into Hyundai E&T, which will be financed by Hyundai Heavy Industries, Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co.
Growing demands for high-end ships such as drill ships and offshore plants prodded Hyundai Heavy to set up the new company, the shipbuilder said.
Hyundai E&T will handle ship and offshore plant designs for Hyundai Heavy, Hyundai Mipo and Hyundai Samho. It will also expand its business portfolio into electrical and electronic sectors and construction equipment of Hyundai Heavy`s non-shipbuilding sector.
Hyundai Heavy plans to increase the number of ship designers to 1,600 by 2018 from the current 350, and the number of employees in the ship inspection sector to about 400.