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Hyundai Wia Sells Defense Unit for $269M, Targets $11.1B Revenue by 2035
Hyundai Wia sells defense division for $269m to focus on thermal management and robotics, aiming for $11.1b revenue by 2035.
In brief
Hyundai Wia sells defense division for $269m to focus on thermal management and robotics, aiming for $11.1b revenue by 2035. Hyundai Wia sells its defense unit for 358.4 billion won ($269.3m) to invest in thermal management and robotics, targeting 14.8 trillion won ($11.1b) revenue by 2035. Originally reported by…
Hyundai Wia Sells Defense Unit
Hyundai Wia is selling its Special Business Division to Hyundai Rotem for 358.4 billion won (approximately $269.3 million).
Defense Unit Valuation
The defense unit's operating value was assessed at 480 billion won (approximately $360.7 million) with 117 billion won (approximately $87.9 million) real estate remaining.
Investment Plan
Hyundai Wia plans to invest 3.7 trillion won (approximately $2.8 billion) through 2035 to boost revenue from 8.8 trillion won (approximately $6.6 billion) to 14.8 trillion won (approximately $11.1 billion).
Revenue Targets
The company targets 10.8 trillion won (approximately $8.1 billion) for mobility and 4 trillion won (approximately $3.0 billion) for thermal management and robotics by 2035.
Thermal Management Expansion
Thermal management systems will expand into non-automotive industries like energy storage and data centers by 2035.
Robotics Focus
Robotics will target logistics, parking robots, and factory automation solutions for AI transformation factories.
Investment Breakdown
Hyundai Wia will invest 1.8 trillion won (approximately $1.4 billion) in R&D, 1 trillion won (approximately $751.4 million) in global production, and 900 billion won (approximately $676.3 million) in new businesses.
Short-Term Earnings Gap
The sale could reduce annual operating profit by 40 billion won (approximately $30.1 million) as new businesses ramp up.
Business Restructuring
Hyundai Wia will restructure into thermal management, robotics, constant velocity joints, and engines, modules and drivetrains by 2035.
Strategic Shift
The move aligns with Hyundai Motor Group's shift to electrification and robotics while exiting defense for long-term growth.
The essence
Hyundai Wia sells its defense unit for 358.4 billion won ($269.3m) to invest in thermal management and robotics, targeting 14.8 trillion won ($11.1b) revenue by 2035.
