South Korea’s biggest container shipping firm by sales figures has now unveiled its long and short-term strategies. The company which was formerly known as Hyundai Merchant Marine announced that it would expand its’ cargo capacity to 1.2 million TEU by 2026 from the current 820,000 TEU, investing over 15 trillion won ($11 billion) in ships over the next five business years on terminals and logistics facilities to broadened its business to become the largest shipping company globally.
The insolvent firm is currently tied up under the control of the state-run Korea Development Bank (KDB), foreground that 15 trillion won is the rock-bottom amount of investment required to get back on its feet, emphasizing that it has become financially well sound enough over years to drive a large scale investment.
The largest shipping company also stated its long-term investment blueprints are already been rounded off and the company is disregarding the government’s decision to privatize the firm.
“We have yet to discuss with our major shareholders about when and how they will privatize our company, but we will make the investment, regardless of this issue,” HMM CEO Kim Kyung-bae said in a press conference held at the company’s new headquarters on Yeouido, Seoul, on the occasion of 100 days since his appointment.
He further added, “I will do my best for HMM not to damage our country anymore,” “SM said its investment is not intended to become involved in management,” he added, “We believe its claim, so we plan to make efforts for the company to profit as one of our investors.”
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The CEO winnowed out the probability of SM Group becoming his company’s largest shareholder, even though the commingling has raised its stake in HMM throughout this year to 6.17 percent, and this would make the company become the third-largest shareholder.