Focusing on Shipbuilding
The Hyundai Heavy Industries Group held a shareholders’ meeting on November 15 and announced that it would spin off its non-shipbuilding subsidiaries for business efficiency.
Specifically, the group is to be divided into the six parts consisting of: shipbuilding, maritime business and engine; electrical and electronic business; construction equipment; robot; green energy; and service. The group’s loans are to be allotted to the six so that Hyundai Heavy Industries’ debt ratio can fall below 100%.
The latter two, which are smaller in size than the others, are planned to be subject to contribution in kind while the rest are split off so the allotment can be made.
The group, which is the largest shipbuilder in South Korea, has concentrated on the disposal of non-core business units for a while. For instance, it has spun off Hyundai Corporation, Hyundai Finance Corporation, Hyundai Venture Investment and Hyundai Energy & Resources, sold Hyundai Avancis and liquidated Hyundai Cummins and its corporations in Germany, China, etc.
“This decision is to make a fresh start with non-shipbuilding subsidiaries having resulted in the lack of efficiency and competitiveness in the group focusing on shipbuilding,” the group explained.