HS Hyosung Advanced Materials has shortlisted Stick Investment and JKL Partners as final bidders for its tire steel cord division, advancing a divestment that could exceed 1 trillion won ($694 million).
The South Korean materials manufacturer, working with Samjong KPMG, attracted over 10 potential buyers in preliminary bidding, including Chinese private equity funds and steel companies seeking export alternatives amid U.S. tariffs imposed under President Trump.
The shortlisted private equity firms will conduct due diligence before main bidding begins in early June, with a preferred buyer expected by month’s end. The sale targets completion by late June.
The tire steel cord division holds the top market share in North America and ranks third in Europe, but has faced growing pricing pressure from low-cost Chinese competitors. Steel cords, bundled thin wires that absorb shock and improve ride comfort, are critical components in tire manufacturing.
HS Hyosung aims to reduce its 230% debt ratio while funding new ventures in electric vehicle materials, hydrogen, and artificial intelligence. The cord division currently generates about 40% of the company’s total profit.
