Hyosung progresses divestment of steel tire cord business

Seoul – Hyosung Advanced Materials Corp. (HAMC) has announced that it has progressed the divestment of its steel tire business, valued at KRW1.5 trillion (€1 billion).

In a 20 May stock exchange filing, the Korean company said it had selected “a lead manager” for the tire steel cord business division.

As part of the process, the manager has conducted a preliminary bid for the sale, and selected a shortlist of qualified preliminary acquisition candidates.

Qualified candidates have been individually notified, HAMC added without giving further information.

The Seoul-based group announced its decision to review the business at the beginning of this year, stating that all options, including a "sale, strategic alliance and investment attraction” were on the table.

HAMC produces steel-, polyamide- and polyester-based tire reinforcement products at facilities in Korea, China, the US, Vietnam and Europe.

Hyosung says it is the world's largest supplier of ultra-tensile (UT) steel cord, which is in growing demand as a reinforcement for lightweight tires in the EV market.

Over recent years, the group has substantially focused on developing its polyester tire cord business, for which it also claims to be the world’s No. 1 supplier.

Polyester is also key to HAMC's sustainability efforts – as evidenced by its development and supply of recycled PET reinforcement for Hankook's iON tires. (ERJ report)