The website Pulse is reporting that South Korea's Hyundai Heavy Industries Co. plans to spin off its remaining non-shipbuilding businesses, including electric-electronic systems and construction equipment, in addition to earlier divestiture targets of robotic, green energy and facility support operations.
According to multiple sources on Sunday, the country's largest shipbuilder is targeting to complete the second round of reorganization by the first half of next year. The two operations took about 18 percent of the total sales of the shipbuilder with sales from electric-electronic systems and construction equipment businesses totaling 2.51 trillion won ($2.20 billion) and 2.23 trillion won, respectively, last year.
The reorganization plan is pursued separately from the self-restructuring outline submitted to creditors in June in return of debt relief.
The spinoff would make the shipbuilder slimmer to fully concentrate on its core function as a shipyard. The additional liquidity from the sale would better equip the company against prolonged market slump.
Source: Pulse
