HS Hyosung Advanced Materials has taken a step toward supporting the global green transition by securing steel raw materials with reduced carbon emissions.
On June 18, the company announced that it signed a memorandum of understanding (MOU) with Tata Steel Thailand for a long-term supply of eco-friendly steel raw materials.
Under this agreement, HS Hyosung Advanced Materials will obtain a stable supply of eco-friendly steel raw materials necessary for the production of steel cords used in tires. Tata Steel Thailand, a subsidiary of the Tata Group in India, produces high-quality steel raw materials using electric arc furnace (EAF) methods.
The electric arc furnace process recycles scrap steel, significantly increasing energy efficiency and reducing carbon emissions by approximately 60% compared to traditional blast furnace methods. HS Hyosung Advanced Materials plans to utilize these environmentally friendly raw materials to produce and supply steel cords for tires with substantially reduced carbon footprints.
Moreover, eco-friendly steel cords tend to yield higher profit margins than conventional blast furnace products, which is expected to contribute to stable profitability within HS Hyosung’s steel cord business.
Sung Nak-yang, CEO of HS Hyosung Advanced Materials, stated, “With this MOU, we have secured a stable supply of eco-friendly raw materials. We will actively respond to the growing demand from global tire customers for environmentally sustainable products.”
Tire steel cords are key reinforcements that enhance tire durability and shape stability. As the electric vehicle (EV) market expands, the importance of high-strength steel cords is increasing. Additionally, with rising demands for sustainable raw materials in advanced countries such as Europe, the demand for eco-friendly tire steel cords is on the rise.
HS Hyosung Advanced Materials plans to increase the sales proportion of eco-friendly tire steel cords from 5% in 2025 to 15% by 2027, reinforcing its commitment to sustainability.
