Hyosung has abandoned plans to sell its steel cord production business

Hyosung Advanced Materials Corp. has announced that it has abandoned its planned sale of its steel cord production, a move that was communicated to US private equity firm Bain Capital, which had previously been the leading contender to acquire the business, valued at around 1.5 trillion won (USD 1 billion). 

According to Hyosung, the change in plans is due to increased uncertainties in the global economy - Korean experts note that the Middle East military conflict was also a factor - which has led to a "growing need for supply stability" among tire manufacturers. Additionally, the company points out that the market demand for steel cord has increased significantly recently.

"At present, we have no plans to proceed with additional procedures related to the sale of assets, and we will continue to remain a key player in this segment," Hyosung said. 

In 1968, Hyosung became the first tire cord producer in Korea, and the company currently produces both steel and textile cord, as well as bead wire for the tire industry.