Posted on 24 Jun 2020
Japan's Yamato Kogyo has announced the sale of a 51% stake in its South Korean rebar plant, YK Steel, to South Korean electric arc furnace rebar producer Daehan Steel. This is to promote the development of the rebar plant. The new cooperation is expected to start in September this year, Kallanish notes.
The plant has a steelmaking capacity of 930,000 tonnes/year and a rolling capacity of 1.18 million tonnes/year, and mainly produces bar. The plant posted a KRW 18.47 billion ($152.87 million) net profit in 2019, 81.64% higher on-year.
Yamato says the Korean steel market is currently shrinking. Cooperation with a local Korean steel mill is expected to further enhance business competitiveness and profitability, by combining the advantages of the two companies' steelmaking and rolling technologies. At the same time, the rebar mill may face relocation, but the relocation plan is yet to be disclosed.
