Introduction of Electric Arc Furnace Steel Raw Materials... Reducing Carbon Emissions by 60%
Expansion of Eco-Friendly Tire Steel Cord... Targeting 15% by 2027
HS Hyosung Advanced Materials announced on June 18 (local time) that it had signed a memorandum of understanding (MOU) with Tata Steel in Bangkok, Thailand, for the long-term purchase of eco-friendly steel raw materials.
Sung Nakyang, CEO of HS Hyosung Advanced Materials (left), and Tarun Daga, CEO of Tata Steel Thailand, are taking a commemorative photo for the MOU on long-term purchase of eco-friendly steel raw materials. Provided by HS Hyosung Advanced Materials
Through this agreement, HS Hyosung Advanced Materials will be able to stably secure eco-friendly raw materials needed for the production of steel cord, which is used as reinforcement material for tires. Tata Steel, a subsidiary of India's Tata Group, produces steel using the electric arc furnace (EAF) method that recycles steel scrap, which is known to emit approximately 60% less carbon compared to the conventional blast furnace method.
The company explained that tire steel cord produced using eco-friendly raw materials is more profitable than existing products and can also meet the demand for sustainable raw materials in advanced markets such as Europe. HS Hyosung Advanced Materials plans to increase the share of eco-friendly steel cord sales from the current 5% to 15% by 2027.
Sung Nakyang, CEO of HS Hyosung Advanced Materials, said, "With this agreement, we have secured a stable supply of eco-friendly raw materials," adding, "We will actively respond to the demand for eco-friendly products from global tire customers."
Meanwhile, HS Hyosung Advanced Materials received the highest rating, the Platinum Medal, from global supply chain ESG assessment agency EcoVadis last year, and was included in the Dow Jones Sustainability Index (DJSI) Korea for two consecutive years.
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