Investing 22.9 Billion KRW to Acquire 61.8% Stake
Plan to Develop Independent ESS Linked with Plaspo
"Synergy Effect in ESS and Energy Solutions Sector"
[Asia Economy Reporter Moon Chaeseok] Hyundai Electric is accelerating the independent development of energy storage systems (ESS) by acquiring the power conversion device specialist company 'Plaspo.' The company plans to target not only the private and public sector ESS distribution projects but also the distributed power markets overseas, including North America and Europe.
On the 4th, Hyundai Electric announced that it will acquire 61.8% of Plaspo's shares for 22.87 billion KRW. The main acquisition contract is scheduled to be signed within this month. The plan is to secure management rights of Plaspo by acquiring 53.8% of existing shareholders' old shares and additionally obtaining shares through a third-party allotment paid-in capital increase.
Since its establishment in 2001, Plaspo has been engaged in power conversion devices for renewable energy, solar power generation, and energy management solution businesses. It is a strong small and medium-sized enterprise with excellent technology and know-how in eco-friendly power generation fields such as solar, wind, and fuel cells.
The company explained that through this acquisition, it will be able to further strengthen its competitiveness in the ESS market, which is considered a core facility in the energy transition process. ESS refers to a system that stores electricity in storage devices and supplies it when electricity is needed. Hyundai Electric plans to target private and public ESS distribution projects and overseas distributed power markets such as North America and Europe through independent ESS development linked with Plaspo's power conversion devices.
The company also expects significant synergy effects in the new business energy solutions field. It plans to combine Plaspo's wind, solar, and fuel cell power generation technology know-how with its intelligent energy solution, Intigric, to take the lead in the business. A company official said, "Through close technical cooperation between the two companies, we will further enhance the competitiveness of eco-friendly energy solutions and ESS businesses," adding, "In addition, we plan to maximize synergy effects from the acquisition and lead the eco-friendly power business."
Since September last year, Hyundai Electric has been actively participating in public-private led renewable energy projects, starting with the Korea Electric Power Corporation's Jeju Geumak Substation public ESS project, the renewable energy infrastructure construction project in Banwol-Sihwa Industrial Complex, and the carbon-neutral campus project at Kyungpook National University.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
