April 19, 2024
Industrials
Hyundai Rotem seals W120.7b deal with government
[THE INVESTOR] Hyundai Rotem, South Korea’s leading rolling stock and defense unit of Hyundai Motor Group, inked a 120.7 billion won ($105.86 million) deal with the government to repair old tanks, the company said June 29.
The defense product maker and the Defense Acquisition Program Administration, or DAPA, agreed to repair and upgrade aged K1 and K1A1 tanks, most commonly used in the Korean army, for a year until June 29, 2018.
The deal worth 120.7 billion won is 4.05 percent of the company’s 2.9 trillion won sales flagged last year.
Hyundai Rotem had rebuilt old K1 and K1A1 tanks last year in a 158.5 billion won contract with the DAPA.
The latest agreement is expected to contribute to the company’s goal to get its name on the list of the top 100 local companies by 2020.
“The mid- to long-term management goal set for 2020 will work as a compass and direct staff and executives to head in the same direction,” said Hyundai Rotem CEO Kim Seung-tack at a company event.
To reach the goal, the company will post 5 trillion won in annual sales across a number of segments, the company said.
The railway segment of Hyundai Rotem will increase target sales to 3.3 trillion won a year and try to advance to one of the world’s top five rolling stock companies, the company said.
Seeking to advance to the country’s No.1 defense maker of weaponry used on land, the defense segment of the company will aim to post 900 billion won in annual sales.
The company’s industrial plant related segment will try to record annual sales of 940 billion won to leap forward as a leading automobile and industrial plant installation company, Hyundai Rotem said.
Hyundai Rotem‘s shares closed at 20,950 won on the Seoul bourse on June 29, up 2.44 percent from the previous day‘s close.
By Kim Bo-gyung/The Korea Herald (lisakim425@heraldcorp.com)
The defense product maker and the Defense Acquisition Program Administration, or DAPA, agreed to repair and upgrade aged K1 and K1A1 tanks, most commonly used in the Korean army, for a year until June 29, 2018.
The deal worth 120.7 billion won is 4.05 percent of the company’s 2.9 trillion won sales flagged last year.
Hyundai Rotem had rebuilt old K1 and K1A1 tanks last year in a 158.5 billion won contract with the DAPA.
The latest agreement is expected to contribute to the company’s goal to get its name on the list of the top 100 local companies by 2020.
“The mid- to long-term management goal set for 2020 will work as a compass and direct staff and executives to head in the same direction,” said Hyundai Rotem CEO Kim Seung-tack at a company event.
To reach the goal, the company will post 5 trillion won in annual sales across a number of segments, the company said.
The railway segment of Hyundai Rotem will increase target sales to 3.3 trillion won a year and try to advance to one of the world’s top five rolling stock companies, the company said.
Seeking to advance to the country’s No.1 defense maker of weaponry used on land, the defense segment of the company will aim to post 900 billion won in annual sales.
The company’s industrial plant related segment will try to record annual sales of 940 billion won to leap forward as a leading automobile and industrial plant installation company, Hyundai Rotem said.
Hyundai Rotem‘s shares closed at 20,950 won on the Seoul bourse on June 29, up 2.44 percent from the previous day‘s close.
By Kim Bo-gyung/The Korea Herald (lisakim425@heraldcorp.com)
