HS Hyosung Advanced Materials has withdrawn the sale of its tire steel cord division.
HS Hyosung Advanced Materials said in a filing on the 3rd that it had notified Bain Capital, with which it had been negotiating over the sale of the tire steel cord division, of the withdrawal, and that it currently has no plans to proceed with additional sale procedures.
The company cited rising demand from customers for supply chain stability amid growing global economic uncertainty as the reason for the withdrawal. It said tire makers have been continuously requesting stable procurement of steel cord, a key material, and that related demand has also been rising rapidly in recent days.
It also noted that it considered the potential to generate revenue centered on high value-added products and the expansion of synergies with existing businesses. Steel cord is a core reinforcement that determines a tire's durability and safety, and demand for high-performance products is increasing as electric and eco-friendly vehicles spread.
HS Hyosung Advanced Materials produces both fiber tire cord and steel cord and has been recognized for strong synergy between the two businesses in terms of technology and customer base.
A company representative said the company plans to strengthen its business competitiveness by focusing on high value-added products while responding to global partners' calls for supply chain stability, adding that it will continue to fulfill its role as a core steel cord manufacturer.