Hyundai Glovis Co., the logistics unit of Hyundai Motor Group, announced its plan to invest over 9 trillion won (US$6.5 billion) by 2030. The investment aims to achieve more than 40 trillion won in sales by that year.
At its first CEO Investor Day, the company revealed that the investment will include mergers and acquisitions to expand its business beyond the automotive sector into other promising areas.
Hyundai Glovis Co. plans to invest over 9 trillion won (US$6.5 billion) by 2030, a significant increase from the 2 trillion won invested over the past five years. Of the planned investment, 77 percent will go towards logistics, shipping, and distribution, while 23 percent will be allocated for mergers and acquisitions based on strategic demands.
This year, Hyundai Glovis projects an operating profit of 1.6 trillion to 1.7 trillion won, with sales expected to reach 26 trillion to 27 trillion won. CEO Lee Kyoo-bok stated that the company aims to achieve 3 trillion won in annual operating profit by 2030, with a profit margin of 7 percent.
During the annual Investor Day in Seoul, CEO Lee emphasized the company’s goal of achieving aggressive sales growth and high returns, indicating that Hyundai Glovis will actively pursue mergers and acquisitions to support its business expansion.
He highlighted Hyundai Glovis’s plans to become a total logistics provider and stressed the importance of transparent communication with the market to ensure that the company’s growth benefits shareholders.
Hyundai Glovis is aiming to diversify its client base beyond Hyundai Motor Group’s affiliates, which currently dominate its business. The company handles vehicle shipments for Hyundai Motor Co. and Kia Corp., as well as for other global automakers like Volkswagen AG. To further diversify, Hyundai Glovis is working to secure more clients, including China’s BYD Co., and expand its transport business portfolio to include products like natural gases.
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