HD Hyundai has announced a strategic initiative to bolster its small and medium-sized partner companies, ensuring crucial supply chain stability amidst global geopolitical challenges, including the US-Iran conflict. This comprehensive support package focuses on providing essential shipbuilding materials and robust financial aid to mitigate potential production disruptions effectively.
The material support specifically addresses vital shipbuilding components. HD Hyundai will supply critical ethylene, essential for steel cutting processes, and foundational base materials required for high-performance marine coatings. Leveraging its affiliate, HD Hyundai Chemical, the company is set to secure 2,000 tons of ethylene, with distribution commencing from May based on partner requests. Furthermore, plans are actively underway to provide xylene, a key ingredient for paint production, facilitated through HD Hyundai Oilbank.
Beyond material provision, HD Hyundai is extending significant financial backing designed to stabilize partner operations across its diverse business sectors. This includes crucial support for firms within shipbuilding, construction equipment, and power systems, underscoring HD Hyundai’s holistic commitment to its entire ecosystem.
A cornerstone of this financial assistance is the activation of its 400 billion won (approximately $266 million) “Export Supply Chain Credit Guarantee Program.” Launched earlier this year, this innovative program empowers partner firms to secure essential financing without the traditional burden of collateral. Beginning this month, this initiative is expected to substantially enhance cash flow, streamline raw material procurement, and fortify the operational resilience of its valued partners.
A company official affirmed HD Hyundai’s dedication, stating, “We are proactively securing key materials and delivering targeted financial support to ensure unwavering, stable operations for our cherished partners. We will continuously monitor market conditions and stand ready to implement additional support measures whenever necessary, reinforcing our long-term partnership vision and collective strength.”
stlee0329
