HD Hyundai Oil Bank announced its plan to acquire HD Hyundai Cosmo, a joint venture between HD Hyundai Oil Bank and Cosmo Oil, a Japanese refinery company, and merge it into a wholely-owned subsidiary.
HD Hyundai Oil Bank struck a contract to acquire all shares of HD Hyundai Cosmo with Cosmo Oil on Oct. 31.
HD Hyundai Cosmo is a 50:50 joint venture established by HD Hyundai Oil Bank and Cosmo Oil.
HD Hyundai Cosmo, specializing in production of paraxylene (PX), a raw material for petrochemical products, saw its profit plunge sharply due to fierce competition with Chinese companies.
HD Hyundai Oil Bank’s acquisition of HD Hyundai Cosmo removes the limit on the latter’s production, so the production of products with higher profitability will be preferred according to market conditions.
HD Hyundai Oil Bank also signed an MOU on future cooperation in new businesses with Cosmo Oil.
The agreement calls for collaboration in future energy businesses, such as sustainable aviation fuel, circular naphtha and pyrolysis oil as well as areas, such as carbon capture, utilization and storage (CCUS) technology.
Earlier, HD Hyundai Oil Bank publicly disclosed its plan to acquire the shares of HD Hyundai Cos by Nov. 1 and its merger date was set at Dec. 30.
HD Hyundai Oil Bank President & co-CEO Song Myung-joon and co-CEO Chung Im-joo.
President Song and Senior EVP Chung Appointed to Jointly Lead HD Hyundai Oil Bank
Senior Executive Vice President Song Myung-joon of the Financial Support Office at HD Hyundai and Senior Executive Vice President Chung Im-joo, head of the Safety Production Headquarters at HD Hyundai Oil Bank, have been appointed to jointly take the helm of HD Hyundai Oil Bank.
HD Hyundai revived a “co-representative system” to rescue HD Hyundai Oil Bank, a refinery subsidiary.
It is the second time a co-representative system has been introduced since 2021, when vice chairman Kang Dal-ho and president Joo Young-min jointly headed the refinery subsidiary.
CEO Song, a graduate of Yonsei University Public Administration Department, is a seasoned financial expert as he has held positions, such as financial and business planning affairs.
It is the first time a financial expert-turned CEO has been appointed since former CEO and president Moon Jong-bak took office between 2014 and 2018.
Co-CEO Senior Executive Vice President Chung, a graduate of Yonsei University Chemical Engineering Department, is a field management expert as he worked as an engineer in charge of production process and technology at Daesan plant and held positions, such as head of the safety production headquarters at Hyundai Chemical.
A HD Hyundai official said, “The reshuffle of CEOs has been carried out to aggressively cope with rapidly changing management conditions, such as management condition changes following the outcomes of the U.S. general election, international situation changes, caused by the Russian-Ukraine war, crude oil and currency exchange changes, and HD Hyundai Oil Bank make diverse efforts to improve management conditions through corporate culture innovation and unit price reduction.”
HD Hyundai Conducts Regular Personnel Changes, Promoting 74 Executives
HD Hyundai carried out a regular personal change for the year 2024 on Nov. 25.
The personnel change came after president-level executives were reshuffled on Nov. 14.
Executive Vice President Lee Chang-ho of HD Hyundai Electric and four others were promoted to senior executive vice president while 24 vice presidents, including Vice President Yoon Hoon-hee of HD Hyundai Heavy Industries were promoted to executive vice president. Forty-five people were promoted to vice president.
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