HD Hyundai to Provide 740 Billion Won in Early Material Payments to Partners

Responding to Prolonged Middle East Conflict

Material Payments to Be Made Up to 9 Days Earlier

HD Hyundai is stepping up to support its partners who are facing difficulties due to the prolonged conflict in the Middle East. The company plans to make payments for materials up to nine days in advance and to help alleviate the burden caused by rising raw material prices.

HD Hyundai CI.

On May 14, HD Hyundai announced that it would provide early payments for materials totaling 740 billion won to support its partners. This measure was taken in response to the increased financial burden on partners stemming from global supply chain instability and rising raw material costs.

In the shipbuilding and offshore sector, HD Hyundai Heavy Industries and HD Hyundai Samho will provide early payments amounting to approximately 568 billion won. HD Hyundai Marine Engine and HD Hyundai Marine Solution also plan to make early payments of 25.7 billion won and 10 billion won, respectively.

In the energy sector, HD Hyundai Electric will also accelerate payments for materials totaling 133 billion won.

In the construction equipment sector, HD Hyundai Construction Equipment will strengthen support for partners who are struggling with the supply of raw materials and parts due to the prolonged situation in the Middle East. The company plans to shorten the adjustment cycle for the subcontract payment linkage system, which reflects changes in raw material prices in supply payments, and respond quickly to urgent requests from partners.

A representative from HD Hyundai stated, "This is a measure to support the stable business activities of our partners amid ongoing external uncertainties," adding, "Because our partners are our joint destiny, we will continue to pursue win-win growth strategies for mutual development."

Previously, in April, HD Hyundai also proactively secured and supplied core materials for shipbuilding, such as essential raw materials and paint ingredients, to minimize production disruptions and stabilize management for its small and medium-sized partners.

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