Hyundai Heavy Industries construction arm splits

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Hyundai HX300L wheel loader Hyundai Construction Equipment will now form a standalone company Hyundai HX300L wheel loader

Hyundai Heavy Industries (HHI) has announced it has separated its construction equipment division from the parent company, with the new entity to be called Hyundai Construction Equipment Co, Limited.

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Hyundai Construction Equipment will take on all responsibilities previously handled by the old construction division from the beginning of April, but with the added ability to make independent decisions. HHI says this will give the new company greater a greater ability to respond pragmatically to market trends.

Hyundai Construction Equipment will handle not only construction machinery but also Hyundai’s materials handling products such as forklifts.

The move comes as part of a major restructure of the Hyundai Heavy Industries group, which in South Korea is synonymous with shipbuilding. South Korea’s shipbuilding industry has been in a downturn, and the major shipbuilding firms have been selling non-core assets.

HHI will retain all shipbuilding businesses, while the group’s construction equipment, electric systems and robotics divisions will each form individual autonomous businesses, still retaining the Hyundai name.

The restructure hasn’t been without controversy, however, with the move sparking industrial action from the company’s union employees in South Korea, resulting in the company’s first full-day work stoppage in 23 years.

Disgruntled workers also attempted to disrupt the shareholder vote on the subject, but were unsuccessful, and the motion to split the group was passed with 98 percent support from shareholders.


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