On May 14, HD Hyundai announced it would advance a total of 740 billion won in material payments by up to nine days. This decision comes in response to the increased financial burden on partners caused by global supply chain instability and rising raw material costs.
In the shipbuilding and marine sectors, HD Hyundai Heavy Industries and HD Hyundai Samho will prepay approximately 568 billion won in material costs. HD Hyundai Marine Engines and HD Hyundai Marine Solutions are also set to expedite payments of 25.7 billion won and 10 billion won, respectively. Additionally, HD Hyundai Electric in the energy sector will advance 133 billion won.
In the construction machinery sector, HD Construction Machinery will adjust the payment linkage system to reflect fluctuations in raw material prices for partners struggling with supply issues due to the ongoing crisis. The company will also enhance its response speed to urgent requests from partners, expanding its support.
A representative from HD Hyundai stated, "In a situation where external uncertainties persist, these measures are aimed at supporting the stable operation of our partners' businesses. Since our partners are in a community of shared destiny, we will continue to pursue win-win strategies for mutual growth."
Meanwhile, HD Hyundai reported the previous day that its consolidated revenue for the first quarter of this year reached 19.6019 trillion won, with an operating profit of 2.8348 trillion won. This marks a 14.7% increase in revenue and a 120.4% increase in operating profit compared to the same period last year.
* This article has been translated by AI.
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