Hyundai Heavy to be split into 4 firms as part of restructuring plan

SEOUL: South Korea's Hyundai Heavy Industries is being split into four companies, with its non-shipbuilding businesses being spun off to improve management efficiency and competitiveness, the shipbuilder said on Tuesday.

South Korean shipbuilders have been selling non-core assets and slashing jobs to cope with shrinking orders from the oil industry that forced the firms into heavy losses last year. South Korea is home to the world's three largest shipbuilders - Hyundai Heavy, Daewoo Shipbuilding & Marine and Samsung Heavy Industries Co Ltd.

Under the plan, Hyundai Heavy will be divided into four companies. It will retain core businesses, including shipbuilding, offshore and industrial plant, while three other firms will focus on electro electric systems, construction equipment and robot business, the company said in a statement.

Existing Hyundai Heavy stakeholders will be get around 0.75 shares of the company and shares in each of the three other entities.

The spinoff is part of its restructuring plan submitted to creditors.

The three newly created companies will seek listings on the stock market. The company expects the separation to be completed on April 1, 2017.