▶ Early payment to 820 partners before lunar new year to relieve financial burden in high IR market
▶ “Will continue to support ESG management and mutually growth with partners”
The three construction equipment companies of HD Hyundai are taking action to realize coexistence with partners by paying delivery transaction costs earlier than scheduled.
Hyundai Genuine, Hyundai Construction Equipment, Hyundai Doosan Infracore announced that the three construction equipment companies have completed payments on purchasing costs worth KRW 240 billion to its partners before the Lunar New Year holiday.
Payments have been made to a total of 820 partners that have provided raw materials, parts, consumable to the three construction businesses, all small-to-mid or mid-sized companies. Hyundai Doosan Infracore completed payments on the 18th, which was initially due at the end of January, while Hyundai Genuine and Hyundai Construction Equipment will be paying the price for materials delivered from Jan 1 to Jan 15, on the 20th which is eleven days earlier than the initial plan.
The three construction equipment companies of HD Hyundai decided to pay material costs earlier on to enable smooth flow of fund and help relieve the burden partners are facing in the current high interest rate market.
A representative of Hyundai Genuine mentioned, “We hope that our decision to complete payments before the holidays will help our small-to-mid sized partners improve liquidity in a situation where interest rates are high and the economy is stagnant,” and added, “We will continue to support our partner’s ESG management and make efforts to grow together.”
To realize fair trade and to coexist with partners, the three construction equipment companies of HD Hyundai have started participating in a pilot project since last September which automatically reflects the unit costs for each delivery when there are fluctuations in raw material price. Hyundai Doosan Infracore has already been participating in this system since 2012 and has been nominated one of the best businesses that has worked with the largest number of consigned companies. This year, the company has also started on an ‘ESG Management Support Project for Supply Chains’ which will support partners that have difficulty establishing an ESG management system. <EOD>
■ Photo Description: The new CI of Hyundai Genuine