HS Hyosung Advanced Materials Corp. is exploring the sale of its steel cord division in a deal that could fetch up to 1.5 trillion won ($1.2 billion), as the South Korean materials maker shifts focus toward specialty fibers and carbon composites.
The potential divestment comes as the unit, which supplies reinforcement materials to global tire manufacturers, faces growing pressure from Chinese competitors offering lower-priced alternatives. The division generated 860 billion won in sales and 140 billion won in EBITDA last year.
While Hyosung maintains strong market positions in North America and Europe, industry experts note that Chinese producers have significantly eroded pricing power in the steel cord segment. The company’s polyester tire cord business, which holds the top global market share, remains unaffected by the strategic review.
The Seoul-based manufacturer recently provided a 21 billion won debt guarantee to its Qingdao steel cord facility, highlighting ongoing support for the business while strategic options are considered. A company spokesperson said no final decision has been made on the potential sale.
The move would allow Hyosung to redirect resources toward growth areas including carbon fiber and artificial intelligence applications, as traditional materials businesses face margin compression from Asian rivals.
