HD Hyundai to rename subsidiaries to boost brand identity

HD Hyundai Co., a South Korean conglomerate that operates in shipbuilding, construction equipment, oil refining and other sectors, plans to rename its major subsidiaries with the prefix HD.

The move aims to increase the exposure of its new group name and strengthen its brand identity as a future-oriented company. HD Hyundai changed its name from Hyundai Heavy Industries Group earlier this year.

According to industry sources on Sunday, Korea Shipbuilding & Offshore Engineering, an intermediate holding company for shipbuilding affiliates; Hyundai Heavy Industries Co., a shipbuilder; Hyundai Construction Equipment Co., a construction machinery maker; Hyundai Doosan Infracore Co., an industrial vehicle manufacturer; Hyundai Oilbank Co., an oil refiner; and Hyundai Electric & Energy Systems Co., an electric equipment maker; will change their names to HD Korea Shipbuilding & Offshore Engineering Co., HD Hyundai Heavy Industries Co., HD Hyundai Construction Equipment Co., HD Hyundai Doosan Infracore Co., HD Hyundai Oilbank Co. and HD Hyundai Electric & Energy Systems Co.

The name change plan will be finalized at regular shareholders meetings scheduled for later this month.

Hyundai-Genuine, an intermediate holding company for construction machinery affiliates, may also change its name altogether. A leading candidate is HD Hyundai Site Solution Co., which reflects its business of providing solutions such as construction machinery and industrial vehicles that move industrial sites.

Some other shipbuilding affiliates such as Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co. are also considering changing their names.

An official from HD Hyundai said nothing has been decided yet.

The massive name change is expected to generate considerable trademark rights income for HD Hyundai. The securities industry estimates that HD Hyundai will collect 32 billion won ($25 million) in trademark usage fees from its affiliates per year.

In addition, rental income of 40 billion won to 60 billion won per year from moving its headquarters to Pangyo Global R&D Center in Seongnam will boost its dividend capacity.

Write to Seo-woo Jang at suwu@hankyung.com