One of directions Hyundai-Kia Motor Company is moving is producing its own steel...
Korea Times notes...
Hyundai Hysco, a steel-manufacturing arm of the Hyundai Automotive Group, has been a key steel plate supplier to its global auto producing affiliates _ Hyundai Motor and Kia Motors.
The company saw its cumulative production of cold rolled steel sheet for cars at its factory in Sunchon, South Cholla Province exceed the 5-million-ton mark.
Hysco said its Sunchon plant has reached the production mark in 62 months since it began operation in 1999, which is the shortest period of time for a single factory in the world.
Manufacturing of cold rolled steel sheet for vehicles is considered to be one of the steel sheet production fields that requires the most complicated and fastidious technologies.
Hysco will further focus on developing futuristic new materials and products for the auto industry as the local vehicle output has grown by about 10 percent on an annual average, a company official said.
In connection with the efforts, the company is about to introduce significant value-added products to the market, including hydro forming and super-fine-grain steel, through consistent research and development and exploring prospective spheres.
He said that joint growth of the material industry and expansion in production facilities for car steel sheet, in accordance with augmentation of the auto industry, is important.
Hysco plans to build a steel plate plant in Slovakia next year to supply products to Kia Motors which will open an assembly plant in Slovakia late next year.
The steel maker said it will begin construction next February, with products being rolled off production lines as early as in November 2006.
It plans to invest 30 billion won for the plant, which will be equipped with various high-tech facilities.
Hysco has production facilities in Beijing, China and in Alabama in the United States to support Hyundai MotorÂ’s vehicle manufacturing.
Kia Motors is HyscoÂ’s second-largest shareholder with a 24.1 percent stake, and Hyundai-Kia chairman Chung Mong-koo has 10 percent. Kia plans to sell 10 percent of its Hysco shares to investors this year as part of its asset management efforts.
Goldman Sachs said the sale of Hysco shares, valued at $100 million, will likely boost KiaÂ’s net profit by 3.1-8.2 percent.
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