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Hyundai Heavy may liquidate German wind energy units

Hyundai Heavy Industries, the world’s largest shipbuilder, said Wednesday that its German wind energy affiliates may be liquidated due to their prolonged losses.

The Germany-based subsidiaries in question ― Jahnel-Kestermann Getriebewerke GmbH and JaKe Service GmbH ― have posted deficits ever since they were acquired by the Korean shipbuilder in 2011.

“Many options, including liquidation, are being considered,” said Hyundai Heavy spokesman Ryu Geun-chan.

“As our company is also experiencing difficulties, diverse measures are being considered for (operations) that are not part of the company’s main business,” he added.

In 2011, JaKe Service posted a loss of 41.1 billion won ($37.4 million). In the following year, the company’s debt overtook its assets after posting a loss of 35.1 billion won.

The protracted slump in the European wind turbine industry may have also fueled Hyundai Heavy’s discussion over the possible liquidation, analysts said.

According to Bloomberg New Energy Finance’s report, only $50.5 billion was invested in the global industry in the first quarter of this year, the lowest level in two years due to a decline in wind and other clean energy projects.

Hyundai Heavy itself is also suffering from a slump in the shipbuilding business, largely due to falling demand for ships, offshore and onshore plants.

Local reports said the liquidation may take at least one or two years and that the company may consider other options during the process.

By Suk Gee-hyun (monicasuk@heraldcorp.com)
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