HD Korea Shipbuilding & Offshore Engineering Signs Definitive Agreement to Acquire STX Heavy Industries
Strengthening Position in the Ship Engine Market
HD Hyundai's intermediate holding company in shipbuilding, HD Korea Shipbuilding & Offshore Engineering, is acquiring STX Heavy Industries to strengthen its position in the marine engine market.
On the 31st, HD Korea Shipbuilding & Offshore Engineering and Pine Tree Partners signed the final contract for the acquisition of STX Heavy Industries. According to the contract, HD Korea Shipbuilding & Offshore Engineering will secure a 35% stake in STX Heavy Industries by acquiring 6,524,174 shares held by Pine Tree Partners and 5,364,670 new shares issued through a third-party allotment. The total transaction amount is approximately 81.3 billion KRW.
Through this acquisition, HD Korea Shipbuilding & Offshore Engineering plans to solidify its position in the marine engine market by ▲ expanding large (two-stroke) engine production capacity ▲ strengthening competitiveness of key components ▲ expanding exports through sales synergies.
Going forward, HD Korea Shipbuilding & Offshore Engineering will support STX Heavy Industries' independent management system and eco-friendly engine technology, and specialize production lines by product such as dual-fuel engines and diesel engines to maximize production capacity.
In addition, by acquiring STX Heavy Industries' capabilities in the turbocharger field, it will increase the localization rate of key components and strengthen overseas sales to expand markets abroad, including China.
HD Hyundai Heavy Industries, a subsidiary of HD Korea Shipbuilding & Offshore Engineering, produced its first large engine in 1979 and achieved 200 million horsepower in large engine production for the first time in the world last March.
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An official from HD Korea Shipbuilding & Offshore Engineering said, "By integrating the engine technology possessed by HD Hyundai Heavy Industries, we will respond to the increasing demand for eco-friendly engines and create new opportunities through synergy with the shipbuilding business within the group."
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