Jusung Engineering to spin off major units

South Korea's Jusung Engineering Co. plans to spin off its semiconductor, solar, and display equipment businesses and transform into a holding company.

The company said on Thursday it will pursue the spin-off and split-off of its business units to establish independent management for each segment.

The newly formed entity, named Jusung Engineering, will focus on semiconductor technology development and manufacturing.

Meanwhile, a wholly-owned subsidiary, Jusung SD, will be established through the split-off to specialize in solar and display technology development and manufacturing.

The current Jusung Engineering will transform into Jusung Holdings, solely handling investment and real estate management.

The separations require shareholder approval at an extraordinary shareholders' meeting in October.

Jusung Engineering also reported first-quarter results, with sales of 56.5 billion won ($41.3 million) and operating profit of 7 billion won on a consolidated basis.

This reflects a 17.7% decrease in sales and a 39.4% decline in operating profit year over year.

Write to Ji-Hye Min at spop@hankyung.com