Hyundai Wia Considering Sale of Defense Division to Hyundai Rotem

Hyundai Wia is considering selling its defense business division to Hyundai Rotem, another affiliate of Hyundai Motor Group.

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According to industry sources on April 15, Hyundai Wia is reviewing the sale of its defense business division to Hyundai Rotem, with the goal of completing the transaction within this year.

There are reports circulating in anonymous online communities suggesting that Hyundai Wia has started practical work on the sale as part of a business restructuring within the group.

Hyundai Wia is reviewing an additional business restructuring only nine months after completing the sale and spinoff of its machine tool business in July last year. If the defense business is sold, the company is expected to focus its operations on thermal management and robotics.

The defense division has been a part of Hyundai Wia since its establishment in 1976. The company mainly produces large-caliber artillery, such as the barrels for the K9 self-propelled howitzer and the main gun for the K2 tank. Defense sales, which stood at 18.57 billion won in 2022, increased to around 40 billion won last year.

If the sale is completed, Hyundai Rotem is expected to absorb Hyundai Wia's core technologies for producing large-caliber artillery and other defense capabilities, thereby strengthening its competitiveness.

Both Hyundai Wia and Hyundai Rotem stated regarding the potential sale, "We are reviewing it, but nothing has been decided yet."

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