Hyundai Hysco Co., Ltd. Business Report up until FY ended Dec. 2013
Financial Overview (Consolidated)
|(in millions of won)|
|FY ended Dec. 31, 2013||FY ended Dec. 31, 2012||Rate of
Sales by division (Ratio)
Business Reorganization-In October 2013, Hyundai Steel, a steel company in the Hyundai Motor Group, announced that it will absorb the cold-rolled steel business unit of Hyundai Hysco. By acquiring Hyundai Hysco's Dangjin Plant and Suncheon Plant, Hyundai Steel will become an integrated steel manufacturer, which covers production of raw materials through manufacture of cold-rolled steel sheet. The merger is planned to take place on December 31, 2013. Hyundai Hysco will thereafter function as a steel service center, which supplies steel products to the international plants of Hyundai Motor and Kia Motors. It will also help automakers develop and produce lighter vehicles (From a press release, October 17, 2013)
-The Company has established a new subsidiary, Hyundai Hysco TR OTOMOTIV CELIK URUNLERI SAN. ve TIC A.S in Turkey. The subsidiary is currently constructing an automotive coil center with an investment of 28 million US dollars. The facility is scheduled to be completed by June 2013 to produce coils for 200,000 vehicles a year. (From a press release, January 28, 2013)
-In March 2011, the Company established Hysco Steel Industry and Trade Brazil LLC in Piracicaba, Sao Paulo. Plant construction began in July 2011.
-In May 2011, the Company announced that it will establish a joint-venture company in Chennai, Tamil Nadu, India with Sumitomo Pipe & Tube Co., Ltd. and Sumitomo Corporation. The new entity, Automotive Steel Pipe India Private Ltd., will manufacture automotive steel pipes, starting at the end of 2012 for supply to Hyundai Motor, as well as Japanese, European, and U.S. automakers. Investment in the project is expected to reach approximately 2 billion rupees (about 3.6 billion yen) to ensure the monthly production capacity of 4,000 tons. Automotive Steel Pipe India will be capitalized at approximately 400 million rupees (about 700 million yen), of which 55 percent will be invested by Hysco Steel India Private Ltd. and 45 percent by SPT&SC Investment Co., Ltd. SPT&SC Investment is a joint venture between Sumitomo Pipe & Tube and Sumitomo Corporation. (From a press release on May 27, 2011)
Production-In May 2013, the Company commenced full-scale operations at the Dangjin Plant's second cold-rolling factory. The factory produces cold rolled steel sheets for automobiles, having the capacity to manufacture 1.5 million tons of these products a year. (From a press release, June 3, 2013)
-In January 2012, the Company held a ceremony at its Ulsan Factory to commemorate the completion of hot press facilities. (From a February 7, 2012 press release)
-In January 2012, the Company announced that the No.2 CGL facility at its Suncheon Factory was completed in January 2012, with full commercial production being started. Since the completion of this latest expansion project, the Suncheon Factory has increased its production capacity of zinc-coated steel sheets to 770,000 tons, which includes the original 470,000 ton capacity it had before the expansion. (From a January 27, 2012 press release)
-In May 2011, the accumulated production volume of cold-rolled products at Dangjin Works reached 10 million tons. (From a press release on May 27, 2011)
Business Plan-In December 2013, the Company , which will soon transfer its cold-rolled steel business to Hyundai Steel, announced its financial targets for 2020. The total sales are forecast to reach KRW 8.6 trillion, of which KRW 1.6 trillion won is expected to be generated at the steel pipe business, KRW 2.2 trillion at the automotive parts (lightweight components and fuel cell parts) business, and KRW 4.8 trillion at the steel service business for the overseas markets. The company's sales during 2012 totaled KRW 8.4 trillion, of which KRW 5.4 trillion was generated at the cold-rolled steel business and KRW 1.4 trillion at the steel pipe business. (From a press release on December 4, 2013)
|(As of Dec. 31, 2013)|
|Facility||Location||Number of employees||Area of development|
|Ulsan R&D Center
Research team on weight saving technology
|Ulsan||10||New technologies in the area of steel pipes and tubes|
|Uiwang R&D Center
Research team on environmental technology
|33||Fuel cells and other new growing technologies|
R&D Expenditure (Non-consolidated)
|(in millions of won)|
|FY ended Dec. 31, 2013||FY ended Dec. 31, 2012||FY ended Dec. 31, 2011|
|% of sales||0.8%||0.2%||0.2%|
R&D Activities-In August 2013, the Company announced that the company and Hyundai Motor have jointly developed steel rear bumper beams. Compared with existing products made from glass-mat reinforced thermoplastics, the new hot-stamped steel beam is 40 percent lighter, while offering an approximately 20 percent improvement in strength levels. (From a press release, August 13, 2013)
-In 2011, the Ulsan R&D Center completed developing the prototype of an engine mount for the Hyundai Sonata's successor model.
-The Uiwang R&D Center is developing metal separators for fuel cells. These fuel cells will be used on Hyundai's new fuel cell car scheduled to go into small-lot production at the end of 2012.
Planned Investment Projects
|(in millions of won)|
|Amount to be invested in 2014 and afterwards||Purpose of
|Lightweight automotive parts||103,400||-Expanding production capacity|
|Overseas||26,915||-Increasing supply volume|
Investments in Korea<Dangjin Works>
-In January 2013, the Company completed its second plant to produce cold-rolled products in Dangjin, Chungcheongnam-do. The facility is now conducting trial production, planning to start commercial operations in May 2013. The company is investing 922 billion won in the new plant, of which 661.3 billion won was already invested by the end of 2012. (From a press release, January 28, 2013)
-In October 2011, the Company completed its expansion project at the second CGL continuous galvanizing line and started full-scale operations. It invested 106.3 billion won in the new line to ensure a yearly production capacity of 250,000 tons.
-In September 2011, the Company held a groundbreaking ceremony for its second cold rolling plant, which is scheduled to be completed in May 2013. The new plant has the capacity to produce 1.5 million tons of products a year, raising the Company's total cold rolling capacity to 6 million tons. The Company is investing 922 billion won in this project.
-In January 2012, the Company completed its expansion project at the second continuous galvanizing line (CGL) and started full-scale operations. It invested 126 billion won in the new line to ensure a yearly production capacity of 300,000 tons.
-The Company is adding a No.3 and No.4 hot stamping equipment. Investment period for the No. 3 facility is October through December 2011 and for the No.4 facility is October through December 2012. The total investment in this project is planned to reach approximately 15 billion won, which will increase Ulsan Works' capacity to produce lightweight auto parts to 2.5 million units a year.
Investments outside Korea<Turkey>
-The Company's Turkish subsidiary Hyundai Hysco Tr Otomotive Celik Urunleri San ve Tic. A.S. announced that it completed a new coil center in June 2013. The plant will be able to produce annually steel sheets for 200,000 vehicles for the local plant of Hyundai Motor and other customers. (From a press release, August 14, 2013)
-The Company said Suzhou Hyundai Hysco Steel Process Co., Ltd. completed its plant to produce automotive steel sheets and other steel products. Production at this new facility started in May 2013 with an annual production capacity of approximately 150,000 tons. The Suzhou subsidiary headquartered in Zhangjiagang City, Jiangsu Province was established in August 2012. It is owned 80 percent by Hyundai Hysco, 10 percent by LG International Corporation and 10 percent by Daesung Steeel Co., Ltd. (From a press release, August 14, 2013)
-The Company will establish a new plant in Piracicaba, Sao Paulo to manufacture steel sheets. It is investing approximately 32 million US dollars during the period between July 2011 and May 2012, planning to ensure the capacity to supply steel sheets for 150,000 vehicles a year.
-In July 2013, the Company held a ceremony to celebrate the completion of a new plant at Automotive Steel Pipe India Pvt. Ltd.（ASPI）in India. This facility's production capacity is expected to reach 50,000 tons. The steel pipes produced at this plant will be supplied to local facilities of Hyundai Motor and other OEMs. ASPI is a joint venture between Hyundai Hysco and Sumitomo Pipe & Tube. (From a press release, August 2, 2013)
-In May 2011, the Company said it will establish Automotive Steel Pipe India Private Ltd. in Chennai, Tamil Nadu through a joint investment with Sumitomo Pipe & Tube Co., Ltd. and a joint venture of Sumitomo Corporation. The new facility will manufacture automotive steel pipes for Hyundai Motor, as well as Japanese, U.S. and European automakers, starting at the end of 2012. Its production capacity is expected to reach 4,000 tons a month with a total investment of 2 billion rupees (approximately 3.6 billion yen).