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[Apha Biz=(Chicago) Reporter Paul Lee] Hyundai Steel decided to make the steel pipe business independent.
Hyundai Steel held a board meeting and approved the establishment of a steel pipe business subsidiary. The subsidiary will be formed by in-kind investment. Details related to it will be decided next month.
Hyundai Steel decided to establish a subsidiary to grow its steel pipe business. The steel pipe business has been making steady profits, achieving annual sales of 1.4959 trillion won last year. However, 92% of Hyundai Steel's sales have been relatively undervalued due to the structure of furnaces and electric furnaces. For this reason, it is known that there were many internal concerns about the steel pipe business.
Hyundai Steel's steel pipe subsidiary, which is scheduled to be established, will target the global eco-friendly market. It plans to actively respond to the demand for steel pipes in eco-friendly energy projects such as offshore wind power. First of all, we will target the US market. According to KOTRA, US steel pipe imports increased more than 90% from $ 14.454 million in 2021 to $ 27.486 million last year. Of these, 54% are imported from Korea.
The production capacity of Hyundai Steel's steel pipe division is 1.11 million tons per year. After establishing a subsidiary, it plans to expand its production capacity at home and abroad.
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