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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] Dongkuk Steel Group's cold-rolled steel business subsidiary, Dongkuk CM, is set to acquire Ajou Steel, a company known for its expertise in color-coated steel sheets. With this acquisition, Dongkuk CM will become the world's largest producer of color-coated steel sheets, with a production capacity of 1.23 million tons.
On August 6, Dongkuk CM held a board meeting at its headquarters in Ferrum Tower, Euljiro, Seoul, where it approved the plan to acquire a 56.6% stake in Ajou Steel for 128.5 billion KRW. Dongkuk CM plans to purchase 42.5% of the shares owned by Ajou Steel’s CEO Lee Hak-yeon for 78.5 billion KRW and acquire an additional 8.62 million newly issued shares through a third-party allotment for 50 billion KRW.
Ajou Steel is the fourth-largest producer of color-coated steel sheets in South Korea, with an annual production capacity of 280,000 tons. The company generates 50.6% of its total revenue from color-coated steel sheets used in audiovisual electronics (33.2%) and home appliances (17.4%). These products are primarily used in premium TVs and home appliances such as refrigerators and washing machines.
With this acquisition, Dongkuk CM will ascend to the position of the world's largest color-coated steel sheet producer by production volume. The combined production capacity of Dongkuk CM and Ajou Steel is expected to exceed 1 million tons annually. Dongkuk CM’s domestic market share is projected to increase from 29.7% (as of the first half of this year) to 34.4%, surpassing the current market leader, KG Steel.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
