STX Heavy Industries renamed HD Hyundai Marine Engine after acquisition

STX Heavy Industries has been named HD Hyundai Marine Engine after HD KSOE's acquisition. Kang Young was appointed CEO.

HD Hyundai Marine Engine's new CEO, Kang Young [HD HYUNDAI MARINE ENGINE]

STX Heavy Industries has been renamed HD Hyundai Marine Engine following HD Korea Shipbuilding & Offshore Engineering's (HD KSOE's) acquisition of a controlling stake in the company.

The board approved the name change at a shareholder meeting Tuesday morning where it also named HD Hyundai Heavy Industries (HD HHI) President Kang Young its new CEO, according to HD Hyundai.

Kang joined HD HHI in 1992 and served as head of accounting and management as well as chief financial officer. Kang also led the task force dedicated to the company's acquisition of STX Heavy Industries.

HD HHI and HD KSOE are the two shipbuilding affiliates under HD Hyundai.

Earlier this month, Korea’s antitrust regulator conditionally approved HD KSOE’s acquisition of 35.05 percent stake, becoming the largest shareholder of the marine engine and parts manufacturer now formerly known as STX Heavy Industries.

HD Hyundai forecasts that it can utilize HD Hyundai Marine Engine’s manufacturing technologies in crankshafts, a pivotal engine component, and turbochargers, which boost engine power, to expand synergy with HD HHI.

It also aims to capitalize on environmentally friendly engine technology and expand its global distribution channels, via the acquisition, in order to strengthen its position in the highly competitive ship engine market that it expects to hit 15 trillion won ($10.8 billion) by 2030.

“Green engine technology will be the key propeller in leading the ship market’s energy transition toward decarbonization,” an HD Hyundai spokesperson said in a statement. “We will strengthen our position in the global marine engine market with our highly competitive technological edge.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]