South Korea’s Hyundai Robotics Co. will be demerged from Hyundai Heavy Industries Holdings Co. in May to become a stand-alone company.

Hyundai Heavy Industries Holdings gained the okay on its spinoff plan from shareholders in its annual general meeting on Wednesday. The demerger would take effect on May 1.

The move had been approved by the board last December. Through the demerger, Hyundai Robotics aims to bump up its sales of 266.7 billion won ($217 million) in 2018 to 1 trillion won over the next five years.

Hyundai Heavy Industries Holdings said it would focus on new business growth and investment, while Hyundai Robotics would sharpen its technological capabilities in smart factories and industrial robots to become the world’s top robotics company.

For 2019, Hyundai Heavy Industries Holdings reported a consolidated operating profit of 666.5 billion won on sales of 26.6 trillion won. Net profit totaled 115.3 billion won. Dividends were same as last year at 18,500 won apiece.

By Kim Hyo-jin

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