By Diplomacy Journal Lee Kap-soo

HS Hyosung Advanced Materials signed a Memorandum of Understanding (MOU) with TATA Steel Thailand for the long-term purchase of sustainable steel raw materials on June 18, the company said.

Through this MOU, HS Hyosung Advanced Materials will be able to secure a stable supply of sustainable steel raw materials used in tire steel cords.

TATA STEEL Thailand, a subsidiary of India’s leading Tata Group, produces high-quality steel raw materials using the electric arc furnace (EAF) method. EAF-based products recycle scrap metal and are highly energy-efficient, resulting in approximately 60% lower carbon emissions compared to conventional blast furnace methods.

By using these sustainable materials, HS Hyosung Advanced Materials will be able to produce and supply tire steel cords with significantly reduced carbon emissions. Furthermore, sustainable steel cords are known to offer higher profit margins than those made with blast furnace steel, positioning this as a stable revenue source for the company’s steel cord business.

CEO Sung Nak-Yang of HS Hyosung Advanced Materials stated, “Through this MOU, we have secured a stable source of sustainable raw materials and will continue to meet the growing demand from global tire manufacturers for sustainable products.”

Tire steel cords produced by HS Hyosung Advanced Materials are essential reinforcement materials that enhance the durability and shape stability of tires. With the expansion of the electric vehicle tire market, high-strength steel cords are gaining greater importance. In addition, demand for sustainable raw materials is increasing in advanced markets such as Europe, driving growth in sustainable steel cord sales.

HS Hyosung Advanced Materials plans to increase the sales share of sustainable tire steel cords from 5% in 2025 to 15% by 2027.