Hyundai Steel Co., South Korea's No. 2 steelmaker, decided Tuesday to set up a steel pipe subsidiary as part of efforts to boost competitiveness by streamlining its business portfolio.
The plan, which was approved at a board meeting, calls for completing the establishment of the envisioned subsidiary by the end of this year, the company said.
Hyundai Steel said it will try to develop the independent steel pipe unit as a top-tier domestic player as well as a global company specializing in pipes for eco-friendly energy projects.
Currently, Hyundai Steel operates a steel pipe plant with an annual capacity of 1.11 million tons in the southeastern industrial port of Ulsan.
Last year, Hyundai Steel's steel pipe division generated about 1.5 trillion (US$1.12 billion) in consolidated sales.
In an effort to bolster profitability, Hyundai Steel has been streamlining its business lines since 2020, when it established a forging subsidiary. It has also suspended facilities for such low-profit products as pre-coated metal.
Source: Yonhap News Agency