Seoul: HD Hyundai Co., South Korea's leading shipbuilding conglomerate, announced on Wednesday its initiative to provide raw materials and financial support to its small and mid-sized partner companies affected by supply disruptions due to ongoing tensions in the Middle East.

According to Yonhap News Agency, HD Hyundai has secured essential materials, including ethylene and xylene, through its refinery and petrochemical affiliates. These materials will be made available to partner companies upon request. Specifically, HD Hyundai Chemical Co. has obtained 2,000 tons of ethylene, which is primarily derived from cracking naphtha and is widely used in processes such as oxy-fuel cutting and welding. Meanwhile, xylene, which is essential for producing paints and varnishes, will be supplied through HD Hyundai Oilbank Co.

In addition to providing raw materials, HD Hyundai will offer financial support to partners in the shipbuilding, construction machinery, and power plant equipment sectors. This financial assistance will be extended in collaboration with government-led funds to help these companies manage the challenges posed by external uncertainties.

"As external uncertainties grow, the burden on our suppliers inevitably increases," an official from HD Hyundai stated. "We will support our suppliers so they can continue their production activities stably by proactively securing key raw materials and providing financial assistance."

This initiative aligns with South Korea's broader efforts to secure naphtha and other petrochemical supplies in the face of prolonged Middle East tensions. In response to these challenges, the government recently implemented measures to restrict naphtha exports and prohibit the hoarding of petrochemical materials used in the production of plastics and packaging.