Hyundai Concedes Dynamo and Rolling Stock Production
Hyundai group, who was selected as the seccessful bidder to take over Kia Motors on October 19, has decided to concede rights in manufacturing dynamos or electric motors and rolling stock items.Sohn Byung Du, vice chairman of the Federation of Korean Industries held an interview on October 19 at the FKI building and announced the concession made by Hyundai.
Hyundai withdrew its original intention to form their own independently managed companies in these two sectors, and agreed to make a three party legal team with Daewoo and Hanjin Heavy Industries to discuss a joint venture.
This decision is pivotal in the 'big deal' restructuring movement which seeks some form of industry consolidation. Because Hyundai was successful in its Kia Motors bid, they finally agreed to a compromise in the rail and dynamo sectors.
FKI will also decide and officially announce next month which group should have management control of the joint semi-conductor business between LG Semi-conductor and Hyundai Electronics.
with the Korea JoongAng Daily
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