The consortium led by Hyundai Steel Co., the second largest steel mill in South Korea, said on Friday that it acquired Dongbu Special Steel as part of strengthening its competitiveness in the domestic market.
The purchase cost $ 265.8 million and took place a month after the consortium was selected as the company's preferred bidder for special steels. The consortium also includes Hyundai Motor Group, the world's fifth largest automotive conglomerate, and is interested in the acquisition.
Hyundai Steel believes the purchase of Dongbu Special Steel will help vertically integrate the manufacturing process for parts required for vehicles. Further expansion in this direction is planned through the construction of a special steels facility at its main Tangjin plant, located approximately 123 km south of Seoul. This facility will start operating in 2016.
Dongbu manufactures various types of rolled steel used in the manufacture of engines, gearboxes and other automotive parts.
Hyundai bought the Dongbu group from the Korea Development Bank (KDB), which it held after paying off its debts. Industry sources said the official merger will take place in January 2015, after the country's antitrust authorities review the deal to ensure that there are no violations of trade laws.
Hyundai Steel buys Dongbu Special Steel
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Azovpromstal® 29 November 2014 г. 15:30 |
