South Korea's Shiya Steel will acquire East Asia Steel
South Korea's largest steel pipe producer, Shiya Steel,reported to the Korea Financial Supervisory Authority on August 1 that thecompany will acquire South East Asia Steel. It is understood that East AsiaSteel's third-quarter sales will reach 26.1 billion won (about 23 million USdollars), and the value of 18.62 trillion won (about 16.456 billion US dollars)will be sold to Shiya Steel.
In December last year, Shiya Steel took over thenon-performing loans of East Asia Steel Corporation and is expected to completethe acquisition of East Asian Steel Corporation by the end of this year.
In June last year, East Asian Steel Corporation entered thecourt bankruptcy liquidation process. Before the court took over, East AsiaSteel's monthly steel pipe sales ranged from 15,000 tons to 18,000 tons. Theindustry believes that Shiya Steel will only re-cultivate its customers andeliminate the non-performing loans of East Asian Steel Corporation to return itto normal operation. They added that in this case, competition among Koreandomestic structural steel pipe producers will intensify.
