South Korea’s Doosan Group strongly denied a new report by a local media that claimed it is considering selling off its flagship company Doosan Heavy Industries & Construction Co.

Hit by the news, shares of Doosan Heavy briefly plunged by more than 10 percent to reach a new intraday 52-week low in Seoul trading. The denial stopped the frantic selling. Shares of Doosan Heavy closed Wednesday down 2.74 percent at 16,000 won.

The group’s holding entity Doosan Corp. and Doosan Heavy in separate disclosures on Wednesday said the report was groundless. A senior group official said that the plan was never considered and never will.

Doosan Heavy is the nation’s largest power plant equipment maker and the group’s core unit that accounts for almost a third of its entire sales. It is the only firm in the country that owns original technology to produce nuclear reactors, steam generators and turbines for nuclear power plants. It is also the largest shareholder of the group’s main affiliates including Doosan Engineering & Construction Co., Doosan Infracore Co. and Doosan Engine Co.

Doosan Heavy has been struggling since the Moon Jae-in government has been pursuing phase-out in coal and nuclear power. An official from the group said it has considered selling non-core units or assets to improve financial status but Doosan Heavy has never been taken into account.

By Woo Je-yoon and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]