hyundai steel, the second-largest steel manufacturer in South Korea, has announced that it is planning to merge with hyundai hysco in order to take over the core rolled and coated sheets business of the latter. This move is intended to reduce financial costs and improve profitability for the combined companies. The completion of the merger between hyundai steel and hysco is anticipated to take place on December 31 of this year. On November 29 of this year, a shareholders’ meeting will be held by hysco to consider the decision to join the two companies. The world’s leading steel mills are in the distress of diminishing profitability as a result of the European financial crisis and the slowdown in chinese demand for steel, hyundai steel, etc. The combination will increase Hyundai Steel’s ability to compete with other businesses while also lowering the company’s overall financial costs. Posco and Dongkuk are under a significant amount of pressure to combine their businesses. This is particularly true given the current state of the domestic cold-rolled capacity market, which is characterized by an excess of available capacity and a deficiency of customer demand. At the moment, the yearly supply of cold rolled coils from korea posco, dongbu steel, and hyundai hysco, in addition to imports, totals around 21 million tons, although the local demand is only approximately 12 million tons. Both hyundai steel and hysco are subsidiaries of Hyundai Motor Group’s steel division. Hyundai steel sells hot-rolled coils to hysco, which then processes them into automobile sheet and sells it to Hyundai Motor Group, the parent company of both companies. This partnership between Hyundai Steel and Hyundai Hysco to provide an end supply chain for car manufacturers is one of a kind anywhere in the globe. manufacturing of steel by Hyundai. steel output has dramatically grown since September, when the yearly capacity of the blast furnace reached 4 million tons for the third time. The entire capacity of crude steel production at Hyundai Steel is 24 million tons, with 3 blast furnaces contributing 12 million tones, electric furnaces contributing 12 million tons, bringing the total capacity of crude steel production at Hyundai Steel to 24 million tons. As a result of the merger, Hyundai Steel anticipates that annual sales would increase to 20 trillion won, up from 14 trillion won in the previous year, while at the same time reducing its overall financial expenses. According to the study, the liabilities of around 11 trillion won ($ 10.3 billion) were incurred by Hyundai Steel in order to build the third blast furnaces. Hyundai Steel was required to pay roughly 300 billion won in interest per year. Cold-rolled steel sales accounted for 71 percent of hysco’s sales in the previous year, around 7 trillion won, and 91 percent of the company’s operational profit. Hysco was established in 1975, and its annual production capacity for cold-rolled steel is 6.2 million tons. The cold rolling, coating, and cutting equipment is situated next to the posco gwangyang facility. This equipment is responsible for producing cold rolled coils and coated steel for hysco. hysco had gone into operation annual production capacity of 1.5 million tons cold rolling equipment in karatsu plant in may this year, this year cold-rolled and coated sheets of production is expected to increase from 4.26 million tons in 2012 to 4.8 million tons, desired ratio of hyundai motor group can increase from the current 40% to 60%. If you are looking for a provider of high-quality carbon steel pipe, erw steel pipe, or steel section in China, go no further than ontrend industrial limited. If you have any requirement, please do not hesitate to visit our website.
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