South Korea's aerospace industry is seeking to attract foreign investment in its planned amalgamation by offering competing European and US manufactures up to a 50% stake in the new single entity to be formed by Daewoo Heavy Industries (DHI), Hyundai Space & Aircraft and Samsung Aerospace.
The three South Korean companies have made individual overtures to foreign aerospace corporations, based on bilateral relationships and joint collaborative projects. DHI is believed to have approached Aerospatiale and British Aerospace, while Hyundai and Samsung have sought to involve Daimler-Benz Aerospace (Dasa) and Lockheed Martin, respectively, along with Boeing.
Foreign interest in the planned new company has been stimulated by a mixture of concern over existing supplier agreements and planned new collaborative developments. Boeing and Northrop Grumman have made Samsung and DHI sole suppliers of 747 frames and Lockheed Martin is teamed with Samsung to develop the KTX-2 jet trainer, while Dasa wants to enlist Hyundai as a partner to launch its rival Mako project.
Until the new single company is formed, however, potential foreign shareholders have adopted a "wait and see" approach. The schedule for the consolidation of the companies calls for a framework deal to be presented by 10 October, with detailed terms and conditions agreed by the end of the year, and a legal entity set up early next year.
Major hurdles have still to be overcome, of which the allocation of shares between DHI, Hyundai and Samsung is potentially the biggest. The companies have agreed to the idea of a third party auditor to assess individual assets and debts, but have yet to find an acceptable "neutral party".
South Korea's second largest aerospace manufacturer, Korean Air's Aerospace division, has elected to remain outside the planned single entity, but "reserves judgement" until the company is formed.
Source: Flight International
