Aiming to optimize the management efficiency of its steelmaking business, Hyundai Motor Group decided to merge Hyundai Steel and the cold rolled steel sheet division of Hyundai Hysco, officials said Thursday (17 Oct. 2013).
The merger is to create a synergy effect with Hyundai’s recently-completed blast furnace and thus complete the group’s integrated steel business blueprint. Last month Korea’s second-largest steelmaker held the opening ceremony for its third blast furnace in Dangjin, South Chungcheong Province.
The new furnace will produce some 12Mt of crude steel per year, among which 4Mt is to produce sheet steel for premium automobiles of Hyundai Motor and Kia Motors.
By absorbing the affiliate’s cold rolled steel sheet manufacturing line, the nation’s second- largest steelmaker will encompass all of the crucial stages required to produce car-related steel sheets, the official said.
Hyundai Hysco, minus its cold rolled steel business, will in the future focus on producing special-purpose steel pipes for transporting oil and gas.
With the new Dangjin furnace completed, the steelmaker’s total debt increased to some 11 trillion won ($10.3bn), according to Hyundai Steel officials.
Source: ‘The Korea Herald’, Seoul; 17 Oct 2013