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The two affiliates each held a board meeting on October 17 and agreed on the merger, an official at Hyundai Steel confirmed to Steel First on Thursday October 24.
The merger is expected to be completed by the end of the year, he said.
Currently, Hyundai Steel focuses on the production of crude steel and hot rolled coil, while Hyundai Hysco specialises in cold rolled coil. Both are suppliers to group’s automotive arms Hyundai and Kia.
By taking over the cold-rolling steel sheet production line of Hysco, South Korea’s second-biggest steelmaker is aiming at optimising the efficiency of its steelmaking business and enhancing its competitiveness, the official said.
Last month, Hyundai Steel started operating its third blast furnace, which can churn out about 4 million tonnes of steel annually.
Its integrated steel mill, now equipped with three blast furnaces, has total production capacity of 24 million tpy, which puts it somewhere around the 15th place in the list of top crude steel producers worldwide.
Meanwhile, Hyundai Hysco plans to focus on its steel pipe business to increase its share in the global market, the official said.