Hyundai Genuine Co. officially took off as an intermediary holding unit of Hyundai Heavy Industries Group overseeing heavy equipment business with an aspiration join the global top 5 rank by 2025 upon clearance from the local antitrust agency to take over Doosan Infracore Co. The Fair Trade Commission gave a nod to Hyundai Genuine’s acquisition of 34.4 percent stake in Korea’s top construction machinery maker Doosan Infracore. Hyundai Genuine will become the intermediate holding company once it completes payment next month and have Hyundai Construction Equipment and Doosan Infracore under its arm.

During a shareholders meeting on Tuesday, Hyundai Heavy Industries Group appointed Kwon Oh-gap, chairman of Hyundai Heavy Industries Holdings, and Cho Young-chul, president at Korea Shipbuilding & Offshore Engineering, as co-chief executives of Hyundai Genuine. Cho is also chief financial officer of Hyundai Heavy Industries Group and head of management support at Korea Shipbuilding & Offshore Engineering.

On Wednesday, shares of Hyundai Heavy Industries Holdings gained 1.03 percent to close at 68,900 won, and Doosan Infracore finished flat at 16,350 won in Seoul.

Combined with Doosan Infracore, Hyundai Genuine set goal of becoming one of the world’s top five construction equipment makers by 2025. Doosan Infracore indulged its new parent by delivering 109.2 billion won ($94.6 million) in operating income in the second quarter, up 19.4 percent from a year ago, according to filing on Tuesday. Revenue also jumped 13.8 percent on year to 1.2 trillion won and net profit 99.8 percent to 156 billion won.

By business, construction equipment unit raised 1.03 trillion won in revenue in the April-June period, up 10.7 percent from the same period a year ago on a surge in infrastructure investments and growing demand for equipment on rising raw materials cost, although its operating income fell 3.7 percent to 92.5 billion won due to rising steel price.

Engine business managed to raise 23.2 billion won in operating income, turning to black in five quarters, on sales of 129.2 billion won, up 44.3 percent on year.


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