Hyundai Heavy Industries, which launched four separate companies on Saturday, will invest 3.5 trillion won ($3.1 billion) in research and development by 2021 in its efforts to secure new growth engines, the group said Monday.
The HHI group officially launched four independent business units on Saturday -- HHI, Hyundai Electric and Energy System, Hyundai Construction Equipment, Hyundai Robotics -- after the spinoff plan was given the green light at the shareholders’ meeting on Feb. 27. Previously a vast range of business divisions were under the same umbrella of HHI.
The four companies will invest a combined 3.5 trillion won in R&D and expand its R&D workforce to 10,000 from the current 4,000, the group said on Monday.
Kwon Oh-Gap, Vice Chairman and CEO of HHI, said Monday, “With our business moto that puts technology and quality at the center, we aim to enter the global top 5 for each business units.”
According to the business strategy unveiled on Monday, Hyundai Heavy Industries will invest 2.5 trillion won including 390 billion won in facilities. It will focus on the development of environment-friendly vessels, smart ship and digitalized shipyard.
Hyundai Electric and Energy System and Hyundai Construction Equipment will invest 680 billion won and 660 billion won, respectively, while Hyundai Robotics will spend 110 billion won to expand its Organic Light-Emitting Diodes manufacturing capacity and other businesses.
By Park Ga-young (email@example.com)