HS Hyosung confident scrapped steel cord deal won’t hurt Umicore joint venture

Visitors look around HS Hyosung Advanced Materials' booth during the JEC World 2026 materials show in Paris, March 10. Courtesy of HS Hyosung Advanced Materials

HS Hyosung Advanced Materials has dismissed concerns over fundraising for its battery materials joint venture with Belgium-based Umicore following the withdrawal of its plan to sell its steel cord business to Bain Capital.

The Korean firm emphasized that booming carbon fiber and aramid yarn markets have enabled it to secure sufficient funds for new ventures.

“Carbon fiber and aramid yarn are used in the energy, defense, aviation and space industries,” a company spokesperson said Monday. “We have also seen rising revenue from mobility materials used for airbags and car interiors.”

The company also claimed steady growth in demand for steel cord, which strengthens tires to withstand the heavier weights of electric vehicles.

“Given the recent tensions in the Middle East, we viewed the sale of our steel cord business as a potential risk to the stability of supply chains for our global partners,” it said Friday, confirming the withdrawal and denying any plan to revive the deal.

Since January last year, HS Hyosung Advanced Materials had sought to sell its steel cord business for about 1 trillion won ($664 million), with most of the proceeds earmarked for investment in its battery materials business. Bain Capital was selected as the preferred bidder last July.

During negotiations, the Korean company agreed last November to acquire an 80 percent stake in Extra Mile Materials (EMM), Umicore’s silicon anode materials unit, for around 120 million euros ($138 million). HS Hyosung Advanced Materials also committed to invest an additional 1.5 trillion won in EMM over the next five years to expand mass production.

However, Bain Capital later reportedly offered less than 500 billion won, citing declining profits in the steel cord sector caused by setbacks in shipping products from Chinese and Vietnamese factories to the United States and Europe.

Shinhan Securities analyst Lee Jin-myung was optimistic about HS Hyosung Advanced Materials’ outlook, projecting an 8 percent year-on-year increase in its operating profit to 169.4 billion won this year, as well as a rebound in the carbon fiber business.

NH Investment & Securities analyst Choi Young-kwang also forecast a recovery in the carbon fiber segment but estimated first-quarter operating profit could fall 11.2 percent quarter-on-quarter to 26.9 billion won.

LS Securities analyst Jeong Kyung-hee took a more cautious view, saying profits from tire materials are likely to take time to improve.