MEDIA / H-Story

— Cooperating with Korean SME STARs TECH
— Expected to Supply Deicers to State Governments in Canada

 

Hyundai Corporation is projected to set up a joint venture in Canada along with a Korean eco-friendly deicer startup. This scheme is based on its business diversification strategy promoting the eco-friendly sector as future businesses.

STARs TECH disclosed on April 6 (local time) its plan to found a JV with Hyundai Corporation to advance into Canada. The two firms plan to build an ECO-ST (eco-friendly deicer) plant after reviewing demand in Canada. Details including accurate investments and plant location have yet to be released.

STARs TECH founded in November 2017 has produced eco-friendly deicers using bone fragments extracted from starfish, one type of marine waste. The company successfully attracted investments from NH Investment & Securities and Hanwha Investment & Securities to grow to become the industry’s number one only three years after it was established. Last year, it posted a turnover of KRW 17.1 billion including public procurement contracts valued at KRW 12.8 billion.

Completing its patent registration in Europe, Japan, and Russia, STARs TECH has developed inroads into global markets. Seeking ways to supply its products to major distributors in the US including Amazon, Lowe’s, and Home Depot, it has already set up a manufacturing facility in Slovakia.

In particular, promoting public procurement deals with state governments in Canada, the company is deemed to have decided to construct a plant in order to actively respond to local demand.

Cooperating with STARs TECH, Hyundai Corporation is evaluated to have established a basic framework to advance into eco-friendly markets in Canada.

On the other hand, Hyundai Corporation has sought new business opportunities to break away from its existing trading-centered business structure. In particular, it has focused on eco-friendly projects, considering environmental, social, and corporate governance (ESG) emerging as a major topic across the world.

A case in point is its solar power projects. Hyundai Corporation has set up four subsidiaries since it made inroads into Japan in 2019. The last subsidiary is Hyundai Renewable Lab Ehime founded in Ehime prefecture on Shikoku Island last August. The subsidiary has implemented a solar power project with a capacity of 1300㎾. After the construction is completed, the plant is expected to generate 3500㎾ or more in total.

 

The Guru
April 8, 2022