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- Strategic raw material agreement supports the plan to triple eco-friendly steel tire cord sales by 2027
- Expands sustainable product portfolio to align with global tire manufacturers’ low-carbon sourcing goals
SEOUL, South Korea, June 18, 2025 /PRNewswire/ — HS HYOSUNG ADVANCED MATERIALS signed a memorandum of understanding (MOU) with Tata Steel (Thailand) on June 18th for the procurement of lower-carbon steel wire materials.
Nak Yang Seong (left), CEO of HS HYOSUNG ADVANCED MATERIALS, and Mr. Tarun Daga (right), CEO of Tata Steel (Thailand), are posing for a commemorative photo after signing an MOU regarding the long-term purchase of eco-friendly steel raw materials.
Under the agreement, HS HYOSUNG ADVANCED MATERIALS will secure a reliable supply of low-emission steel wire materials required for the production of steel tire cord. Tata Steel (Thailand), a subsidiary of India’s Tata Group, uses electric arc furnace (EAF) technology to produce steel from recycled scrap metal. Compared to traditional blast furnace operations, EAF production achieves significantly higher energy efficiency and reduces carbon emissions by approximately 60%. By utilizing these materials as raw inputs, HS HYOSUNG ADVANCED MATERIALS can produce and supply eco-friendly steel tire cords with significantly reduced carbon footprints.
Given their higher margins compared to traditional steel products, eco-friendly steel tire cords are expected to strengthen the profitability and competitiveness of HS HYOSUNG ADVANCED MATERIALS’ steel tire cord operations.
“We are pleased to formalize this agreement, which ensures long-term access to environmentally responsible steel,” said Nak Yang Seong, CEO of HS HYOSUNG ADVANCED MATERIALS. “This aligns with our strategy to support global tire makers in their shift toward sustainable materials.”
Steel tire cords produced by HS HYOSUNG ADVANCED MATERIALS are crucial reinforcement materials that enhance tire durability and maintain shape stability. The importance of high-strength steel cords is growing alongside the expanding electric vehicle tire market. Furthermore, as demand for sustainable raw materials grows across developed markets, particularly in Europe, sales of eco-friendly steel tire cords are steadily rising. HS HYOSUNG ADVANCED MATERIALS aims to expand the sales share of its eco-friendly steel tire cord products from 5% in 2025 to 15% in 2027.
HS HYOSUNG ADVANCED MATERIALS’ commitment to sustainability management was recognized last October when the company received the Platinum Medal from EcoVadis — the highest distinction awarded to the top 1% of over 130,000 companies across 180+ countries by the global supply chain ESG ratings provider. In December, the company was also added to the Dow Jones Sustainable Management Index (DJSI) Korea for the second consecutive year, one of global leading ESG benchmarks.
