New Hyundai Heavy to Invest 3.5 Trillion Won in R&D for 5 Years

The Hyundai Heavy Industries (HHI) group, which launched four separate companies recently, will invest a combined 3.5 trillion won (US$3.1 billion) in R&D activities by 2021.

The HHI group said on April 3 that it officially launched four independent business units -- HHI, Hyundai Electric and Energy System, Hyundai Construction Equipment, Hyundai Robotics. All of the new business units were under the e umbrella of HHI. The spinoff resolution was made at the shareholders’ meeting on Feb. 27.

The four companies will invest a combined 3.5 trillion won (US$3.1 billion) in R&D and expand its R&D workforce to 10,000 from the current 4,000, the business group said. 

“I wish that today will be the starting day for the second take-off of Hyundai Heavy Industries” Kwon Oh-Gap, Vice Chairman and CEO of HHI said, adding, “By setting technology and quality at the core value of our management, we aim to enter the global top 5 for each business unit.” 

Hyundai Heavy Industries will invest 2.5 trillion won (US$2.2 billion) including 390 billion won (US$350 million) in facilities. It will focus on the development of environment-friendly vessels, strengthening design capability for offshore plants, smart ship and digitalized smart shipyard, according to the business strategy unveiled on the day.

Hyundai Electric and Energy System and Hyundai Construction Equipment will invest 680 billion won (US$612 million) and 660 billion won (US$594 million), respectively, while Hyundai Robotics will spend 110 billion won (US$99 million) to develop parts standardization to expand its robot business for Organic Light-Emitting Diodes (OLED) processing and construct clean rooms, and so on.