Hyosung confirms Bain Capital as preferred bidder for steel tire cord unit

Seoul – Hyosung Advanced Materials Corp. (HAMC) has confirmed Bain Capital Private Equity (Asia) LLC as the preferred bidder for its steel tire cord business, for the possible KRW 1.5 trillion (€1.0 billion) deal.

In a 28 July disclosure to the Korea Exchange, issued in response to media reports, the company clarified that Bain Capital had been selected as "preferred bidder" and that “talks on detailed terms are ongoing.” 

“The specific terms will be determined in consultation with the preferred bidder,” the company stated, adding that it would update the market when details are finalised or within three months. 

HAMC announced earlier this year that it was considering the sale of its steel tire cord business. 

The company 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)