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South Korea’s vows to minimize impact of Hyundai-Daewoo deal on marine equipment firms

Logistic News - Published on Tue, 19 Mar 2019

Image Source: Blueprint Newspapers
South Korea’s industry ministry said it will keep close tabs on potential impacts of the mega acquisition deal by Hyundai Heavy Industries Co, as local marine equipment firms expressed concerns over losing orders. Hyundai Heavy signed a formal deal with the state-run Korea Development Bank to buy its smaller local rival Daewoo Shipbuilding & Marine Engineering Co.

The Ministry of Trade, Industry, and Energy said while HHI’s purchase of Daewoo Shipbuilding will help beef up the competitiveness of the local shipbuilding industry through the sharing of technology and business know-how, it also acknowledged that subcontractors can be concerned about potential fallout.

Vice Minister Cheong Seung-il said during a meeting with officials from marine equipment firms “In terms of local equipment firms’ concern over securing orders, Hyundai Heavy Industries and the Korea Development Bank already promised to grant Daewoo with an independent management and to maintain the existing subcontractors.”

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Posted By : Rabi Wangkhem on Tue, 19 Mar 2019
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