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Doosan shareholders OK plan to spin off forklift biz

June 25, 2021

Shareholders of Doosan Corp., the holding company of South Korean conglomerate Doosan Group, on Friday approved a plan to spin off the forklift business division, the company said.

During their extraordinary meeting, Doosan’s shareholders passed the proposal to spin off the division and set up a wholly owned subsidiary on July 1, Doosan said in a regulatory filing.

The newly established company was named Doosan Industrial Vehicle Co.

This photo provided by Doosan Corp. shows an unmanned forklift built by the company. (PHOTO NOT FOR SALE) (Yonhap)

This photo provided by Doosan Corp. shows an unmanned forklift built by the company. (PHOTO NOT FOR SALE) (Yonhap)

Under the 750 billion-won (US$665 million) deal with Doosan Bobcat Co., which was signed in March, the whole stake in Doosan Industrial Vehicle will be transferred to Doosan Bobcat, Doosan said.

Doosan Bobcat is a small-sized construction equipment affiliate of the country’s top power equipment maker, Doosan Heavy Industries & Construction Co.

Doosan’s forklift business dominates the country’s market with a 54 percent market share.

The spinoff was one of the measures to improve the financial health of cash-strapped Doosan Heavy Industries & Construction.