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Hyundai Heavy Industries to invest KRW 1 trillion in green shipping tech through IPO

03 Feb 2021

South Korean shipbuilder Hyundai Heavy Industries on Wednesday (27 January) said it plans to invest KRW 1 trillion (USD 897.8 million) in more eco-friendly future businesses in preparation for the low-carbon energy transition.

The investment will be made over the next five years for the development of eco-friendly future ships, development of ‘green’ construction technology, and the construction of eco-friendly production facilities to strengthen its business competitiveness.

To this end, the currently unlisted company, Hyundai Heavy Industries, plans to issue and raise about 20% new shares 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 will develop eco-friendly ships in preparation for the low-carbon era such as hydrogen and ammonia powered ships, advanced smart ships for the future, autonomous ships, and advancing dual fuel propulsion ships.

In addition, the company plans to promote technology investment via M&A and the purchase of shares in 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 is for Hyundai Heavy Industries to secure competitiveness for the future market through preemptive investments as the shipbuilding industry recovers in earnest.

Related: Korean shipbuilding industry receives record number of LNG powered newbuilding orders
Related: HHI and DNV GL present green tanker solutions from joint research partnership
Related: South Korea: HMM signs MOU to demonstrate use of bio heavy oil as bunker fuel

Photo credit: Hyundai Heavy Industries 

Published: 3 February, 2021

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