Hyundai Heavy Industries Co., Ltd. has announced that its construction equipment division has been spun off into a separate entity called Hyundai Construction Equipment Co., Ltd.
According to the senior executives at the parent company, this spin-off will allow them to make independent decisions for the benefit of the industries and markets around the world. The spin off took effect from 1st April 2017. This action is based on a restructuring plan that Hyundai reports began last year. The company is optimistic and says, the move “offers great possibilities and improved agility.”
The company said: “Despite the fact the new company is named Hyundai Construction Equipment we emphasize that both Forklift and Construction Equipment are equally managed with the same goal to grow market share.”
Basically, the Korean company is in the process of reorganizing itself into four companies. Aside from its construction equipment division, it is also spinning off its other non-shipbuilding ventures to improve competitiveness and efficiency. The company has been competing with other large shipbuilders in South Korea, such as Samsung Heavy Industries Co Ltd. and Daewoo Shipbuilding & Marine Engineering Co., Ltd.
As a part of the spin-off strategy, Hyundai Heavy Industries will retain its core businesses, including its industrial, shipbuilding, and offshore plants. Meanwhile, its spin-off companies will focus on three specific business areas—construction equipment, electro-electric systems, and robotics.
The spin-off has already taken effect during the first day of April, moving specified activities into the new companies. Now, the parent company has claimed to have already seen improved versatility and great possibilities from it.