Hyundai Heavy To Invest 1 Trillion KRW In Eco-Friendly Future Business Through IPO

Hyundai Heavy Industries, the world’s number one shipbuilder, invests KRW 1 trillion in eco-friendly future businesses in preparation for the low-carbon era.

Hyundai Heavy Industries announced on Tuesday that it will invest up to KRW 1 trillion over the next five years in the development of eco-friendly and future ships, development of construction technologies, and construction of eco-friendly production facilities to strengthen business competitiveness.

Image Credits: http://www.hhi.co.kr/

For this investment, Hyundai Heavy Industries, an unlisted company, issues and raises approximately 20% of new stocks within the year through IPO (public disclosure). Hyundai Heavy Industries is currently 100% owned by Korea Shipbuilding & Marine Engineering, an intermediate holding company within the group.

Through this investment, Hyundai Heavy Industries is developing eco-friendly ships in preparation for the low-carbon era such as hydrogen and ammonia, advanced smart ships for the future, autonomous ships, and advancing dual fuel propulsion ships.

In addition, the company plans to promote technology investment, including M&A and purchase of shares of companies possessing fuel cell-related technologies, and to lay the foundation for ESG (environmental, social, governance) management by building eco-friendly ships and investing in facilities.

This investment can be interpreted as the timeliness for Hyundai Heavy Industries to secure competitiveness for the future market through preemptive investments as the shipbuilding industry recovers in earnest.

Clarkson Research, a UK shipbuilding and shipping market analysis company, predicted that this year’s global ship order volume increased by about 21% from last year to 23.8 million tons (CGT, 974 ships), and an annual average of 35.1 million tons (1,552 ships) from 2022 to 2025. It has been predicted that orders for ships will come out.

The Shanghai Container Freight Index (SCFI), a representative sea freight index, recorded 2,885 on the 15th, the highest since 2009, when the index began to be aggregated.

An official of Hyundai Heavy Industries Group said, “The paradigm of the global shipbuilding industry is already changing around technology.” It.

Press Release

Source: Maritime Shipping News