"No Plans to Suspend Housing Business"
Hyundai Engineering has decided to temporarily suspend activities for new project orders and is pushing for a change of company name. The company plans to continue with projects that have already been secured or are currently underway. This move is seen as a strong measure to restore the company's image, which has been damaged by a series of recent serious industrial accidents.
According to Hyundai Engineering on April 30, CEO Joo Woojung and the executive team held a town hall meeting with all employees at the company’s headquarters in Gyedong, Jongno-gu, Seoul, to announce this internal innovation plan. During the meeting, CEO Joo and the executives declared that activities to secure new business orders would be suspended for the time being. They did not specify a concrete timeline for the suspension.
The company stated, "New orders in the housing and infrastructure sectors will be actively pursued only after the company’s safety, quality competitiveness, and organizational improvements have been secured. Until then, these activities will be put on hold." They added, "Projects that have already been secured or are currently underway will continue as planned, and this is not a suspension of existing business." Projects that are currently under construction or have already been ordered will proceed as scheduled.
Hyundai Engineering is also working on a company name change. The company was established in 1974 as Hyundai Comprehensive Technology Development and changed to its current name in 1982, maintaining it for 43 years. The company stated, "As we newly establish a value system that reflects the company’s direction, we will also consider changing the company name or CI."
The company’s decision to take such drastic measures is interpreted as a response to concerns that the tarnished image of a construction firm could negatively impact its competitiveness in the future.
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