Liquidity Crisis Eased
Doosan Group said on June 1 that it can resolve the liquidity crisis of Doosan Heavy Industries & Construction Co. as the creditors have decided to provide an additional 1.2 trillion won liquidity support to the ailing subsidiary. “We express our gratitude for the creditors’ support,” it added.
In late April, Doosan Group submitted a plan to raise more than 3 trillion won to normalize the operations of Doosan Heavy Industries & Construction Co. It pledged to raise funds through asset sales, a capital increase and cost reduction. Major shareholders of Doosan Corp. and Doosan Group will participate in Doosan Heavy Industries & Construction's capital increase to fulfill their responsibility.
Doosan Group plans to repay the loans from the creditors by faithfully implementing its management normalization plan.
Doosan Heavy Industries & Construction will also speed up the reorganization of its business portfolio. The company will pivot around the gas turbine power generation and renewable energy businesses. In addition, it plans to expand its current businesses such as wind power and energy storage systems (ESSs), while promoting eco-friendly hydroelectric power generation projects and solar EPC projects, and entering the hydrogen production and liquefaction businesses.