Korean Hyundai Heavy Industries (HHI) Group officially informed that successfully completed the sale of a 17% stake in oil refiner Hyundai Oilbank to Saudi Aramco. Specifically, Saudi Aramco purchased about $1.2 billion to buy the oil refiner, as the deal was first unveiled several months ago before the final decision.
Through this investment, Saudi Aramco boosts the growing plan of expanding its global footprint, while supports its business strategy in general.
The investment in South Korea’s Hyundai Oilbank supports Saudi Aramco’s Downstream growth strategy of expanding its global footprint in key markets in profitable integrated refining, chemicals and marketing businesses which enable Saudi Aramco to place crude oil and leverage its trading capabilities.
…Saudi Aramco noted.
By receiving this large amount, HHI plans to pay off its debts and advance its financial structure, while invest in new projects for instance smart ships or logistics.
At the same time, HHI further goals to enhance the collaboration with Saudi Aramco and give a boost in the petrochemical business, in order to produce propylene derivatives and high-performance engineering plastics.
Previous this year, Saudi Aramco has become the second-largest shareholder in Hyundai Oilbank, confirming that there is a strong partnership between them.
On 12 December, Hyundai Oilbank held an extraordinary meeting and granted the CEO of Aramco Trading, Ibrahim Qassim Al-Buainain as a non-executive director, as part of their business plan.
For the records, both sides are also working together for Saudi Arabia’s largest shipyard, which is already under construction and is estimated to be finished by the end of 2021.
Concluding, the two companies further goal to construct a joint venture for March next year, as it will be established at the King Salman Global Maritime Industries Complex, the plant is scheduled for completion in May 2022.
