Hanjin Shipping said Monday it is merging with one of its subsidiaries, Keoyang Shipping, a dry bulk operator that relies heavily on the transport of iron ore and coal for Korean steel making giant POSCO.
In 2007 Keoyang had revenue of $142 million, with net profit of $20.4 million and assets worth $344 million.
Hanjin said the merger is part of its mid- to long-term plan to expand its bulk business, which is now about 20 percent of the company's total sales. Hanjin will take over 17 dry bulk vessels, including 13 owned by Keoyang.
"The main reason for this merger is to avoid the overlap of the bulk business run by Keoyang Shipping and Hanjin Shipping, and eventually to improve the efficiency of the management and bring synergy effect to the business," the carrier said in a statement.
Hanjin also said it is planning on expanding its bulk fleet from 100 vessels to 250 by 2013.
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