Two metallurgical units of the Hyundai group plan to unite

Hyundai Steel, the second most manufacturer of the metal rolling in South Korea, announced its intention to absorb one of its units that is engaged in the production of thin -leaf rental for the manufacture of cars. Thus, the South Korean metallurgical giant will reduce costs and increase its profitability.

The Board of Directors of Hyundai Steel at the general meeting has already approved a merger with a cold -rocked steel unit of Hyundai Hysco. Until December 31, it is planned to carry out all the necessary measures for this.

The Hyundai Steel and Hysco act as the key links in the Hyundai Motor automotive activity chain, which is the final consumer of the products they are manufactured. Hyundai Steel sells hot -rolled rolls for its unit - HYSCO, which then uses them as raw materials for the manufacture of thin -rolling sheets of which they make parts and bodies of cars. Then this product is supplied by Hyundai Motor, the fifth largest automaker in the world.

Chairman of the Board of Directors of the Hyundai group Jung Mong Ku is the most interested person in the merger of two metallurgical units. He is the owner of 57% of the Hyundai Steel and Hysco shares. This is " adult bird " in its business and has vast experience in managing positions in steel production.

The analyst of SK Lee Jaeu said the following about this: “Thanks to this association, Hyundai Steel will be able to compete with the largest steel company of South Korea Posco, which is No. 1 in the steel business of this Asian country. This, of course, is a positive factor, given that there are no such metallurgical companies around the world that would have constant demand for their products, as in the case of Hyundai Motor Group. ”