Hyundai Steel has sold its Chongqing subsidiary in China, netting a profit of 3.7 billion won (approximately $2.7 million), as part of a broader strategy to reduce its exposure in the Chinese market. This divestment follows a year of inactivity at the Chongqing facility, driven by China’s ongoing real estate crisis, which has significantly impacted demand across various industries, including steel manufacturing.
The sale aligns with Hyundai Steel’s strategy to pivot toward more promising markets, particularly in India, where industrial and automotive demand is on the rise. The company’s move also mirrors similar actions by Hyundai Motor, which sold its Chongqing plant last year, underscoring a coordinated effort to reallocate resources away from China.
As part of its reorganization, Hyundai Steel will focus its remaining Chinese operations around its Tianjin subsidiary, while also preparing to liquidate its Beijing unit. In parallel, the company is establishing new forward bases in the United States and India, including the construction of the Pune Steel Service Center (SSC) in India. This facility, strategically located near Hyundai Motor’s Pune plant, is expected to produce 230,000 tons of steel annually, with operations set to begin in the third quarter of next year.
