Hyundai Heavy Industries and three non-shipbuilding entities separated through a demerger pledged a combined investment of 3.5 trillion won ($3.12 billion) for the next five years on technology development and upgrade.
Hyundai Heavy Industries Group was broken up into four companies as of Monday – Hyundai Robotics, Hyundai Heavy Industries, Hyundai Electric & Energy System and Hyundai Construction Machinery.
Hyundai Heavy Industries dedicated to shipbuilding and maritime facilities will inject 2.05 trillion won on new innovations and facility upgrade. It aims to maintain leadership through preemptive investment in clean-fuel vessels, smart (automated) ships and dockyards.
Hyundai Electric & Energy System and Hyundai Construction Machinery will invest 680 billion won and 660 billion won, respectively, on technology and production ramp-up. Hyundai Electric aims to develop low noise and low loss transformers and expand production capacity for high-voltage circuit breakers. Hyundai Construction Machinery will focus on expanding its flagship line-up of excavators and developing ICT-based services and solutions.
Hyundai Robotics plans to spend 110 billion won on expanding OLED-assembly robotics. The company is the largest player in Korea’s industrial robot market, but its global share is a mere 4 percent. The investment is part of its long-term plan to increase its presence in the global market. The company wants to up its R&D spending to 6 to 7 percent against revenue, matching it to the level of global leaders.
The four companies will also more than double the number of research staff from 4,000 in total now to 10,000 within five years.
The Original Posted By Moon Ji-woong/Maeil Business News Korea