Hyundai Heavy Industries Co., a major South Korean shipbuilder, said Tuesday that it has signed a memorandum of understanding with the state-run utility Saudi Electricity Co. to expand their partnership in the Middle Eastern country's growing electricity market.

Saudi Arabia is seeking to spend a total of $89.3 billion by 2021 to expand its electricity output to 105 GW from the current 65 GW in order to meet growing electricity demand.

Hyundai Heavy has been providing power transformers and gas-insulated switchgears to Saudi Arabia. Last year, the shipbuilder clinched deals valued at 400 billion won to provide such products. (Yonhap)