Recently acquired Hanbo will be seperated by AK Capital

Recently acquired Hanbo will be seperated by AK Capital

AK Capital, a multinational joint venture based in Seoul, declared their intention of seperating South Korean steelmaker Hanbo Steel, which went bankrupt in 1997 and was sold against $377 million to AK Capital in February 2003, into two operations such as bars and HR mini-mill and integrated mill. Investment cost for the restoring of the integrated mill is predicted to be $200 million to the company. Initially, the bars mill and mini-mill will be operated by New Hanbo Company (NHC) and named as Area A. Furthermore AK Capital is aiming to restart cold rolled and galvanized production in the integrated mill, forming Area B, at the Tangjin works by 2005. And operations of this integrated mill is planned to be conducted by Dasco. It is also stated that according to market conditions and demand, an upgrading and expansion plan might follow this division.