Hyundai Steel recently took a major step in its strategic shift by selling its Chongqing subsidiary in China, netting a profit of approximately 3.7 billion won (approximately USD 2.7 million). The sale is part of the company’s plan to accelerate its exit from the Chinese market and focus on emerging markets, particularly India.
The Chongqing subsidiary had been listed for sale since the first half of last year, having been idle for a year due to China’s ongoing real estate crisis. Earlier this year, Hyundai Steel acquired full ownership of the Chongqing unit by purchasing additional shares before divesting its assets and liabilities in the second quarter.
In line with Hyundai Steel’s strategic reorganization, the company also plans to divest its Beijing-based subsidiary, Hyundai Steel Beijing Process, and reorganize its China operations around its Tianjin-based subsidiary. The move reflects Hyundai Motor’s efforts to address the challenges of the automotive industry in China after it sold its Chongqing plant late last year.
Going forward, Hyundai Steel is focusing on expanding into growth markets and establishing new forward bases in the United States and India. The company is currently building the Pune Steel Service Center (SSC), a strategically located facility in India close to Hyundai Motor’s Pune plant. The facility is expected to supply 230,000 tons of steel per year and begin commercial production in the third quarter of next year.
Hyundai Steel’s shift to India highlights the country’s growing industrial and automotive demand, making it an attractive target for expansion. The Pune SSC’s location near major automotive manufacturing hubs offers significant logistical advantages, underscoring the strategic importance of the new facility.
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