Hyundai Hysco is set to purchase Hanbo galvanizing line

Hyundai Hysco is set to purchase Hanbo galvanizing line

South Korean cold rolling mill Hyundai Hysco agreed last week with AK Capital for the purchase of the hot dipped galvanizing line of Hanbo Steel at Tangjin works. The galvanizing line which will be operated by Hysco from now, has an annual capacity of 350'000 tons. Hysco will pay approximately $32.5 million (Won 38.5billion) for this galvanizing line. The line will basically produce galvanized iron for electrical appliances and construction applications. Consequently, the galvanised sheet production for automotive industry will be shifted to the Yulchon works on the south coast. Yulchon is Hysco's main production base for cold rolled and coated sheets. Hysco intends to transport the full-hard cold rolled feeds from Yulchon to Tangjin by ship. Currently,Yulchon is producing around 290'000 tons of galvanized for non-auto applications, per annum. AK Capital, a foreign-Korean joint venture, is about to finalise the takeover of bankrupt steel mill Hanbo. The sales and purchase agreement for the takeover was signed in December 2002. Hanbo Iron and Steel has been under bankruptcy administration since 1997.