- With the aim to develop it as globally competitive business

On November 12, Doosan Infracore reported that its board of directors decided to split off its defense business, launching it as a new corporation.

The new corporation, a wholly-owned subsidiary of Doosan Infracore, will start as a business with solid financial structure with debt ratio of 58% (i.e. sales: 495.2 billion won, assets: 396.9 billion won and liabilities: 146.3 billion won).

Doosan Infracore said that the purpose of the splitoff was part of its effort to actively cope with the radical changes in the environment of the relevant industry, including the government’s move for specialization of the defense industry and abolition of the grouping of relevant businesses.

“In order to survive the current defense industry environment changed by limitless competition, independent expert management system that enables efficiency and speedy decision-making is essential,” a Doosan Infracore official said, “and we will concentrate on the investment in R&D and cultivation of overseas markets with the aim to develop it as globally competitive business.”

The Company’s defense business is engaged in the production of IFVs, anti-air/guided weapons and precision equipment, and the amount of backlog of existing orders stands at 1.7 trillion won. The defense business is expected to make continued growth. Just last month, it signed a contract with DAPA (Defense Acquisition Program Administration) for the supply of 457.8 billion worth of K21 IFVs (Infantry Fighting Vehicles) that compare favorably with those made in more industrialized countries in terms of overall performance and price. It plans to export them to the Middle East, Southeast Asia and Latin America.

Concerning the splitoff of its defense business, Doosan Infracore plans to finish the procedure of splitoff and incorporation registration, through the extraordinary general meeting of shareholders, by the yearend.