Hyundai Automotive Group (Hyundai AG) is further expanding its business territory into Korean steel and construction.
A consortium led by Hyundai AG's two steel units, INI Steel and Hyundai Hysco, has agreed to take over the troubled Hanbo Steel for $777 million.
The acquisition is crucial in Hyundai AG holding down the cost of steel required in automotive manufacturing. In 2003, Hanbo produced 3 million tons of hot and cold-rolled coils along with other automotive steel products, while generating $373 million in sales.
HAG plans that INI will buy Hanbo's hot-rolled steel and steel bar producing facilities, while Hysco will purchase its cold-rolled steel plant.
Following the Chung family legacy of broad business operations that included construction not all business expansion plans of Hyundai AG are related to the car sector.
AMCO, a construction arm of Hyundai AG, announced it plans to enter the housing construction market. AMCO plans to sell 716 apartments in Inchon, west of Seoul later this year.
AMCO, which was established as a Hyundai affiliate in 2002, has primarily focused on building and renovating Hyundai Motor 's plants and facilities.
It was reported in Korea Times, that with Hyundai AG strong capital, it might be just a matter of time before AMCO becomes a major player in the Korean construction market.
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