Transaction Procedures with Doosan Enerbility Completed
Vietnamese Government Approval Secured... Acquisition Finalized at 290 Billion Won
To Be Used as a Hub for Eco-Friendly Ship Components and Port Cranes
HD Hyundai is accelerating the restructuring of its shipbuilding business by securing a production base in Vietnam. The company plans to utilize the newly acquired base, which was previously focused on power generation and plant operations under Doosan Enerbility, as a hub for the production of port cranes and eco-friendly ship components.
HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company for HD Hyundai's shipbuilding division, announced on the 19th that it has completed all transaction procedures with Doosan Enerbility and finalized the acquisition of HD Hyundai Ecovina. In August, HD Korea Shipbuilding & Offshore Engineering signed a share purchase agreement with Doosan Enerbility worth a total of 290 billion won. Since then, negotiations for incentives with the Vietnamese government and the local licensing approval process have been completed.
HD Hyundai Ecovina is located about 120 kilometers south of Da Nang in central Vietnam. Established in 2006, the site has produced thermal power plant boilers, port cranes, and liquefied natural gas (LNG) plant modules.
This acquisition aligns with HD Hyundai's ongoing restructuring of its shipbuilding business. The company is implementing a phased restructuring plan to enhance business competitiveness, including the launch of integrated HD Hyundai Heavy Industries, expansion of overseas yards, and establishment of a global business management entity.
HD Korea Shipbuilding & Offshore Engineering plans to utilize HD Hyundai Ecovina as a production base for eco-friendly independent tanks and as a hub for the port crane business in Asia. Independent tanks are considered core components for eco-friendly vessels, such as LNG-fueled ships, liquefied petroleum gas (LPG) carriers, ammonia carriers, and liquefied carbon dioxide carriers. The company analyzed that demand for these components continues to grow steadily due to the International Maritime Organization's (IMO) strengthened environmental regulations.
A representative from HD Korea Shipbuilding & Offshore Engineering stated, "With the launch of HD Hyundai Ecovina, we are now able to maintain a stable supply chain for core components of eco-friendly ships," adding, "We also expect to secure competitiveness in the port crane market, which is emerging as a future growth sector."
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