HD KSOE Strikes $63.5m Deal for 35% Stake in STX Heavy Industries

Credits: Chuttersnap-unsplash

HD Korea Shipbuilding & Offshore Engineering (KSOE) has agreed to acquire private equity firm Pinetree Partner’s 6.52 million shares in engine manufacturer STX Heavy Industries plus a further 5.36 million newly issued shares, reports Korea Joongang Daily.

According to a Korea Herald report, KSOE is looking to add a production capability in small and midsized engines to its competency in building engines for large container ships.

KSOE is also aiming to scale up STX’s production capacity by accelerating the development of eco-friendly engine technology and establishing advanced production lines for diesel and dual fuel engines.

On 27 July, HD KSOE announced a return to profitability when it posted a revenue of 5.4536 trillion won for Q2 2023, up 30.2% year-on-year, with an increase in shipbuilding volumes and marine engines supply. Operating profit amounted to 71.2 billion won and HD KSOE said it anticipated that operating profit would increase in the latter half of the year, resulting from an increase in vessel prices.

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Source: Korea Joongang Daily


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