Dongkuk Steel Mill announced on the 15th that it is considering acquiring Hyundai IFC, a subsidiary of Hyundai Steel. Hyundai IFC is a subsidiary that was partitioned from Hyundai Steel's forging institutional sector in 2020, fully owned by Hyundai Steel.
Last year, Hyundai IFC reported revenue of 527.3 billion won and an operating profit of 39.8 billion won. Hyundai Steel needs to raise funds for the construction of an electric arc furnace steel mill in Louisiana, U.S., estimated at 8.5 trillion won ($5.8 billion). The industry is observing that Hyundai Steel has been conducting acquisition demand surveys since last year.
Hyundai Steel Pipe has also been identified as a candidate for sale. Hyundai Steel Pipe is a 100% subsidiary established by Hyundai Steel to enhance its competitiveness in the steel pipe institutional sector by separating the business units.
Dongkuk Steel Mill noted, "It is true that we are multifacetedly reviewing the acquisition of Hyundai IFC and Hyundai Steel Pipe to strengthen our competitiveness in the steel business and discover new growth engines, but nothing has been confirmed yet." A Hyundai Steel representative stated, "We are reviewing various measures at the company level to enhance competitiveness, but nothing has been decided so far."