Hyundai Heavy Industries Group is pushing ahead with new investments, and plans to more than double its number of researchers in the wake of its official split into four separate companies.
Hyundai Heavy Industries (HHI) Group will invest $3.1 billion in research and development (R&D) by 2021, the South Korean shipbuilder said Monday.
HHI Group has also officially split into four independent companies – Hyundai Heavy Industries, Hyundai Electric & Energy Systems (HEES), Hyundai Construction Equipment (HCE) and Hyundai Robotics (HR).
HHI Group’s shareholders approved of the split at a meeting held on Feb. 27 in Ulsan.
Under the investment plan, the new HHI will invest $1.8 billion in developing eco-friendly smart ships, enhancing offshore engineering capabilities, and establishing a smart shipyard.
Meanwhile, HEES will invest $640 million, HCE will invest $620 million and HR will invest $90 million, all of which will be for technological innovations.
Overall, the HHI Group will be expanding its number of researchers from 4,000 to 10,000.
The companies also introduced a performance-based pay system, replacing the former seniority-based pay scale.
Looking ahead, HHI Group plans to spend 6-7 percent as a percentage of annual sales in R&D.
HHI to invest $3.1b in R&D by 2021
