Doosan Heavy considers selling marine engine unit

Doosan Heavy Industries & Construction, Korea’s top power equipment maker, said Thursday that it is reviewing a variety of options to sell its marine engine-making unit as part of its efforts to unload non-core assets.

In a regulatory filing, Doosan Heavy said it is considering unloading its stake in Doosan Engine, but nothing has yet been decided.

Industry sources said four or five potential investors have shown interest in taking over Doosan Engine.

Doosan Heavy is the No. 1 shareholder of Doosan Engine, with a 42.66 percent stake.

Doosan Engine logged an operating income of 17 billion won ($15.5 million) in the first nine months of the year on sales of 639 billion won.

The deal comes as Doosan Heavy is still saddled with heavy debt. Its debt ratio stood at 154 percent as of the end of September, up 6.4 percentage points from the end of last year.

Yonhap