Hyundai Heavy Industries approves plan to split into six separate companies

South Korea's Hyundai Heavy Industries (HHI) has approved a plan to split the group into six separate companies from April 2017.

HHI's shareholders agreed to the restructure on 27 February, which will result in the creation of a shipbuilding company as well as five other firms derived from HHI's business divisions in electronics, robotics, services, alternative energy, and construction equipment.

The corporation's extensive naval shipbuilding and defence activities, will continue under the new shipbuilding company, which will also oversee activities in engine manufacturing, offshore, and industrial machinery.

Under the restructuring plan, which was proposed in November 2016, HHI is expected to list shares in the new companies to generate funds used to stabilise its core business activities.

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