During the “Steel Day” event which was held in the POSCO Center in Daechi-dong on June 9, SeAH Special Steel CEO Yoo Eul-Bong said, “The stock market and the industry excessively worry about Hyundai Steel entering the special steel business. The market share of SeAH Special Steel remains unchanged.”
The main items, which currently are produced and sold by SeAH Special Steel, account for more than 40 percent of the domestic market share. Its domestic market share of cold heading quality wire (CHQ Wire), the basic raw material for various front industries such as cars, electronics, industrial machines, construction and shipbuilding, stands at 41.6 percent. Its cold drawn bar (CD Bar) also shows a 43 percent market share, maintaining the top position in the domestic special steel sector.
However, there is an opinion in the market that SeAH Special Steel is losing ground in the market, as Hyundai Steel has established Hyundai Special Steel and possibly expanded it.
Regarding this, Yoo said, “The decrease in the domestic market can recover by seeking overseas markets. So far, the company is maintaining market share. We are seriously considering to enter the markets in other countries with the start of China and Thailand. The subsidiary in Thailand will be founded in Oct. to Nov. this year.”
After SeAH Special Steel completed its Tianjin plant, the second plant in China, in Oct. last year, the company has considered establishing the plant to produce CHQ wire in the Southeast Asian region.
SeAH Special Steel’s subsidiary in Thailand has been established in the form of a joint corporation, just like its first and second corporations in China, in which POSCO invests a 25 percent stake while SeAH Special Steel invests a 75 percent stake. Through the plant in Thailand, SeAH Special Steel is planning to produce 40,000 tins of CHQ wire annually.
Yoo said, “By the demand of consumers, we will aggressively push ahead with establishing overseas corporations. We are considering to do so in many areas, including India, Mexico, and the Americas.”