14 Nov 2005
Scottsburg, Indiana --Michelin North America Inc. and Hyosung America Inc., an affiliate of Hyosung Corp., have signed an agreement under which Hyosung will purchase Michelin's steel cord facility in Scottsburg.
The American Steel Cord plant, with 220 employees, produces steel cord used in tyre manufacturing. The financial terms of the agreement were not disclosed.
Hyosung will offer employment to all current Scottsburg employees. The Korean-owned company will maintain a comparable employee compensation package, according to Terry Swanner, vice president of Hyosung's North American operations.
The agreement also includes a 10-year supply contract whereby Michelin will purchase steel cord from Hyosung. The supply contract is valued at $650 million over the 10-year term of the contract. Hyosung expects to begin operating the Scottsburg facility in August.
In November 2002, Hyosung purchased Michelin's textile cord facility in Scottsville, Virginia, said Jim Micali, Michelin North America chairman and president. "That transaction proved to be win-win for Michelin, Hyosung and the employees," he said. "We're looking forward to a similarly smooth transaction with American Steel Cord."
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