HS Hyosung Maintains Confidence Amid Steel Cord Deal Withdrawal Affecting Umicore Partnership

HS Hyosung Advanced Materials has confirmed it will not proceed with the sale of its steel cord business, initially valued at approximately 1 trillion won ($664 million), due to concerns over supply chain stability amid geopolitical tensions. Despite this, the company asserts that robust markets for carbon fiber and aramid yarn will support its joint venture with Belgium's Umicore, where it holds an 80% stake in Umicore's silicon anode materials unit and plans to invest an additional 1.5 trillion won over five years.

Analysts predict varied outcomes, with operating profit expected to rise by 8% year-on-year to 169.4 billion won, while others caution about a potential decline in tire material profits. The outcome of this venture is critical, as it could influence HS Hyosung's market positioning in the evolving battery materials sector.