Hyosung Signs $3.2 bln
Deal with Goodyear
Establishes its position as the world's No.1 tire code maker
Hyosung signed a deal to take over four tire code makers, affiliates of the international tire maker Goodyear and supply $3.2 billion worth of tire code to the U.S. company. Tire code is a key material designed to enhance the performance of the tire.
Representatives from Hyosung and Goodyear, including Cho Hyun-sang, Hyosung's chief negotiator, and Richard J. Kramer, Goodyear CFO, inked the agreement at the Goodyear's head office in Akron, Ohio, on August 7 (local time).
Goodyear has 100 operations in 29 countries that churn out rubber processed products and chemicals, including tires.
The agreement calls for taking over tire code plants across the world, including the ones in Decatur, Alabama, and Utica, New York. in the United States, Americana, Brazil and Colma-Berg., and Luxembourg - from Goodyear. The value of the acquisition was not disclosed in accordance with a confidentiality agreement.
Hyosung now operates tire code plants in Ulsan, South Gyeongsang Province, Korea, the United States and China. The acquisition will allow Hyosung to develop a tire code manufacturing base in each continent, and it will likely raise Hyosung's global market share from current 25 percent to more than 30 percent.
Hyosung chief negotiator Cho said the acquisition will allow Hyosung to advance into diverse markets, including not only the existing polyester code, nylon code, steel code, but also advanced new materials like aramid and rayon, used for high-speed tires.
Hyosung's dream of establishing a global manufacturing base came true 38 years after it developed tire code on its own. Hyosung's agreement to supply $3.2 billion won worth of tire code also paves the way for securing long-term profit sources.
Hyosung agreed to acquire a 100 percent stake in Utica, an affiliate of Goodyear.
Meanwhile, Hyosung has been putting more energy into investing into arenas with world-class technologies while exerting itself to explore promising new business areas like telecommunications and environmental business sectors.
To this end, Hyosung (Group Chairman S. K. Cho) said the company has concentrated its capabilities in existing business areas like spandex, tire code and heavy electric fields in a bid to maximize profits by capitalizing on their competitive edge.
Since its establishment in 1966, Hyosung has been playing a major role in the development of the nation's economy mainly in mainstay industries.
Starting with the chemical textile industry, Hyosung has continued to expand its business scope to cover current units of textile, chemistry, heavy industries, construction, trade and information and communications, thus having become a robust business group representing Korea.
Hyosung is producing world-best products including the No. 1 tire code and No. 2 spandex. It is equipped with world-class technologies in the areas of power transformers and circuit breakers. It accounts for the world's largest market share for products like nylon, carpet, automated teller machines, and pet bottles.
Hyosung has been gaining trust from the market, domestic and overseas, by meeting the needs of the clients based on its know-how and technologies accumulated over the past 40 years.
Having set up a global network through some 30 local subsidiaries and overseas branches, the company has been constructing global production lines for the manufacturing of main items like tire code, spandex and power systems.
Hyosung is now poised to leap into a "super world-class enterprise"that will lead the future state-of-the-art industry and is strengthening international competitiveness through bold investment and development of key technologies in future strategic industries.
While focusing on the existing key products like spandex, tire code, technical yarn and power systems with the goal of sharpening its competitive edge in the global market, Hyosung is also turning eyes to the client-first management with the spirit of "Our growth depends on clients"success."Power & Industrial Systems Performance Group of Hyosung has made remarkable contributions to the development of key and electric industries in Korea through advanced technology and production capacity, and the best customer service for the past 40 years since it started its operation in 1962, along with the earnest opening of heavy industry era in the country.
Power & Industrial Systems Performance Unit is proud of having developed an extra high voltage transformer and an extra high voltage circuit breaker for the first time in Korea. The PU strives to head for a Total Energy Solution Company to meet all needs of customers in the process from energy production to consumption as a leading company in electric equipment field. nw
Hyosung Tire Code PU President Choun Young-kwan shakes hands with Richard J. Kramer, Goodyear CFO after inking a deal to supply $3.2 billion worth of tire code .