Hyundai Heavy Industries Group is seeking to strengthen its cooperation with Saudi Arabia’s Aramco, the company with the world’s largest market capitalization. It plans to solidify its position as a major business partner for Saudi Arabia’s Vision 2030 Project.
Hyundai Heavy Industries Holdings announced on Dec. 17 that it has received 1,374.9 billion won from Aramco for the 17 percent stake in Hyundai Oilbank it sold to the world’s largest oil and natural gas producer. The two sides signed an investment agreement on Jan. 28 this year. Aramco became the second largest shareholder of in Hyundai Oilbank.
Hyundai Heavy Industries plans to use the proceeds to repay borrowings and invest in new businesses such as smart ships and smart logistics. The company plans to strengthen cooperation with Aramco in the petrochemical business, including joint production of propylene derivatives and high-performance engineering plastics.
Both sides have been strengthening business cooperation. Hyundai Oilbank held an extraordinary general meeting on Dec. 12 and named Aramco Trading CEO Ibrahim Qassim Al-Buainain as a non-executive director. In June, Saudi Arabian Prince Muhammad bin Salman visited Korea and had a business meeting with Chung Ki-sun, vice president of Hyundai Heavy Industries Holdings.
Korea Shipbuilding & Offshore Engineering, which is a holding company of Hyundai Heavy Industries Group in the shipbuilding division, is building a joint venture shipyard named IMI in the King Salman Shipbuilding Complex together with Aramco, Lamprell and Bahri. The shipyard is currently 30 percent completed and will be fully completed by the end of 2021. In March next year, Hyundai Heavy Industries Group will set up an engine joint venture with Aramco. The joint venture's plant will also be built in the King Salman Shipbuilding Complex. They will start the construction of the plant in September next year and complete it in May 2022.