Hyundai Heavy Industries to Invest 1 Trillion KRW in Eco-Friendly Future Business through IPO

Raising Investment Funds through IPO New Share Issuance, Planning to Go Public within the Year

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Heavy Industries, the world's No. 1 shipbuilding company, will invest 1 trillion KRW in eco-friendly future businesses to prepare for the low-carbon era.

On the 26th, Hyundai Heavy Industries announced that it will invest up to 1 trillion KRW over the next five years to strengthen business competitiveness by developing eco-friendly and future ships, shipbuilding technologies, and establishing eco-friendly production facilities.

The investment funds will be raised by Hyundai Heavy Industries, an unlisted company, through an IPO (Initial Public Offering) by issuing new shares amounting to about 20% within this year. Currently, Korea Shipbuilding & Offshore Engineering, the intermediate holding company within the group, holds 100% of the shares of Hyundai Heavy Industries.

Through this investment, Hyundai Heavy Industries will advance the development of eco-friendly ships and future advanced smart ships and autonomous ships for the low-carbon era, including hydrogen and ammonia, as well as the enhancement of dual-fuel propulsion ships.

Additionally, the company plans to pursue technology investments such as M&A or equity purchases of companies possessing fuel cell-related technologies, and establish an ESG (Environmental, Social, Governance) management foundation through eco-friendly shipbuilding and facility investments.

This investment is interpreted as timely for Hyundai Heavy Industries to secure competitiveness for the future market through proactive investment as the shipbuilding industry recovery trend is gaining momentum.

Clarkson Research, a UK-based shipbuilding and shipping market analysis firm, forecasted that global ship orders this year will increase by about 21% compared to last year to 23.8 million CGT (974 vessels), and expects an average annual ship order volume of 35.1 million CGT (1,552 vessels) from 2022 to 2025.

The Shanghai Containerized Freight Index (SCFI), a representative maritime freight index, recorded 2,885 on the 15th, marking the highest level since the index began in 2009.

A Hyundai Heavy Industries Group official stated, "The paradigm of the global shipbuilding industry has already shifted to technology-centered," adding, "Hyundai Heavy Industries Group will firmly establish its position as a ‘first mover’ leading market changes with differentiated technological capabilities."

This content was produced with the assistance of AI translation services.