On December 16, Samsung Heavy Industries announced that it would sell its Pangyo R&D Center in Bundang District, Seongnam City, Gyeonggi Province, for 400 billion won (US$307 million) to improve its financial situation and raise investment funds.
Samsung Heavy Industries said it has decided to increase its investment in unmanned ship technology while enhancing its competitiveness in the field of environmentally friendly ship technologies such as ammonia and liquefied natural gas (LNG). To this end, the company has decided to sell its research and development center to raise the required investment capital.
The contract is on a “sale and leaseback” basis to a real estate investment trust, Igis Long Whale No. 1, and Samsung Heavy Industries plans to continue to maintain its operations at the site through the leaseback agreement.
The 7,460-square-meter R&D center was completed in December 2014 with five five underground floors and eight above-ground floors.
The Pangqiao R&D Center is one of Samsung Heavy Industries’ important technology R&D bases. Together with the R&D centers in Geoje and Daedeok, it promotes environmentally friendly energy research such as liquid hydrogen-powered ships and fuel supply systems. The R&D center also undertakes the research task of smart shipping-related technologies.
As an important window of Samsung Heavy Industries, the Pangqiao R&D Center also undertakes the function of communicating and cooperating with external enterprises, research institutions, universities, etc. By carrying out industry-university-research cooperation projects, it jointly overcomes technical difficulties and promotes technological innovation and industrial upgrading in the field of shipbuilding and marine engineering.
“We decided to proceed with this sale in order to proactively prepare for the rapidly changing business environment, strengthen our future competitiveness and improve our financial structure,” a Samsung Heavy Industries official said.