STX Heavy Industries Starts Anew as 'HD Hyundai Marine Engine'... Kang Young Likely to Be CEO

STX Heavy Industries, the third-largest domestic ship engine company, is rebranding as 'HD Hyundai Marine Engine' and starting anew.

According to the shipbuilding industry on the 16th, STX Heavy Industries will hold an extraordinary general meeting of shareholders on the 30th to approve amendments to the articles of incorporation and the appointment of directors reflecting this change. An agenda item has been proposed to appoint Kang Young, President of HD Hyundai Heavy Industries who oversaw the acquisition of STX Heavy Industries, and Executive Director Yeo In-pyo as inside directors. Kang, who has served as Chief Financial Officer (CFO), is being considered as the new CEO of HD Hyundai Marine Engine. The HD Hyundai Group plans to finalize the CEO appointment through a separate personnel process. For other non-executive director candidates, Choi Won-jun, Executive Director of Pine Tree Partners, has been nominated.

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The Fair Trade Commission on the previous day conditionally approved the business combination in which HD Korea Shipbuilding & Offshore Engineering, the world's number one ship engine company, acquires 35.05% of STX Heavy Industries' shares. HD Korea Shipbuilding & Offshore Engineering signed a contract in July last year to acquire 35.05% of STX Heavy Industries' shares by investing approximately 81.3 billion KRW and requested a business combination review from the Fair Trade Commission in August of the same year. However, the Fair Trade Commission imposed a condition to ensure that competitors such as Hanwha Engine will not face discrimination in supplying parts to STX Heavy Industries for the next three years.

With the acquisition of STX Heavy Industries, HD Korea Shipbuilding & Offshore Engineering has secured a 70% market share domestically and 37% globally. The domestic competitor Hanwha Engine holds 30% and 13% market shares, respectively. HD Korea Shipbuilding & Offshore Engineering plans to solidify its position in the ship engine market by expanding large (two-stroke) engine production capacity, strengthening competitiveness in key components, and increasing exports through sales synergies.

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