STX Heavy Industries liquidates Malaysian subsidiary, streamlines organization before merger with HD Hyundai - South Korea

According to the investment banking industry, STX Heavy Industries, which manufactures marine engines, recently held a board meeting and resolved to liquidate its Malaysian subsidiary. This could happen as early as the April-June quarter.
The company has begun liquidation procedures and is expected to complete the process by the end of the year. During its time as part of the STX Group, the company's Malaysian subsidiary was established in Kuala Lumpur in 2010 with the aim of entering the global marine plant market, particularly in Southeast Asia.
The Malaysian subsidiary was established in Singapore. The Malaysian subsidiary has not been able to achieve any significant results since its establishment due to the unreasonable business expansion of the STX Group. Once the Malaysian subsidiary is liquidated, it will be a subsidiary of STX Heavy Industries.
The only company that will remain is Korea Marine Crankshaft, which manufactures marine parts. The market is seeing STX Heavy Industries reorganizing its unnecessary businesses ahead of its merger with HD Hyundai Group.
In fact, in January 2024, STX Heavy Industries liquidated STX Energy Solutions, which is a company that specializes in fuel cell business. It then entered into a joint investment with Doc Powerway, a manufacturer of marine parts.
The company is also selling its stake in Taehae Heavy Industries, a rudder manufacturer that it invested in. An STX Heavy Industries source said, "The Malaysian corporation and Taehae Heavy Industries are legal entities that were established as part of the business diversification process when we were still part of the STX Group.
"Since the group was dissolved, we have been unable to carry out normal business activities, and therefore have decided to liquidate the company."