Under the business division plan, HHI will spin off its non-shipbuilding businesses and retain its core businesses including shipbuilding, offshore and industrial plant. Three other firms will focus on electro electric systems, construction equipment and robot business, MANA correspondent reported cited by Reuters.
The spinoff plan as part of the group’s restructuring plan has been submitted to creditors.
The three newly created companies will seek listing on the stock market, it was reported. HHI expects the separation to be completed on 1 April 2017.
The severe downturn of the shipbuilding industry has led to heavy losses at South Korean shipbuilders, with the country’s big three yards, HHI, Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME) all going through restructuring by disposing of non-core assets and slashing jobs.