Hyundai Glovis Signs $100m Qatari Shipping Deal
Hyundai Glovis Co., South Korean shipping firm, clinched a $100 million shipping service contract with a building materials firm in Qatar, reports Yonhap news agency.
According to the agreement signed with state-run Qatar Primary Materials Co., Hyundai will transport 12 million tons of aggregates to the Arab nation from neighboring United Arab Emirates for the next two years.
The aggregates imported by the Qatari government are to be used in the construction of facilities for the 2022 FIFA World Cup to be hosted by the country.
Kim Kyung-bae, chairman of Hyundai Glovis, the logistics unit under auto conglomerate Hyundai Motor Group, said that the a test deal will be a chance for his company to promote its competitiveness in the Middle Eastern logistics industry.
Kim expects to strengthen relations with local consignors to win more contracts in the region.
Meanwhile, in another development related to the company, Hyundai Motor Co's chairman and his son sold $1.1 billion worth of shares in Hyundai Glovis, finding success in their second attempt at a sale after committing to a long lock-up period for their remaining stakes and slashing the price.
Chairman Chung Mong-koo and son Chung Eui-sun had sought to sell 13 percent of the affiliate to comply with new antitrust rules. The Chung family is seeking to cut its Hyundai Glovis holding from 43.39% to a combined to 29.99%, if the stake sale goes as planned.
