South Korean shipbuilder Hyundai Heavy Industries (HHI) has made changes in its management team ahead of establishing a holding company structure.
Through the reshuffle, unveiled in a stock exchange release on November 14, the company’s vice chairman and co-CEO Kwon Oh-gap will resign and assume a different role in the company, while HHI’s current president and chief executive Kang Hwan-goo will take sole leadership of the company.
Additionally, Choi Ki-sun has been promoted to vice president and will be in charge of managing the company’s subsidiaries, according to media reports. It is understood that Kwon Oh-gap will continue as a representative of the holding company. The name and launch date of the holding firm are yet to be unveiled.
The changes have been made as part of HHI’s plan to complete the transition to a holding company system in an effort to recover from a prolonged depression in the shipbuilding market.
During the third quarter of 2017, Hyundai Heavy Industries saw a marginal financial improvement as it posted a 2.1% higher profit year-on-year.
The company’s net profit reached KRW 197 billion in the quarter, against KRW 193 billion reported in the same period in 2016. Operating income dropped 20.8% to KRW 93.5 billion from KRW 118.1 billion reported a year earlier.
World Maritime News Staff