SynopsisHyundai Steel, South Korea's second-largest steelmaker, has announced plans to establish a steel pipe subsidiary, marking a strategic move to enhance its business portfolio and competitiveness. The company aims to complete the subsidiary's formation by year-end, envisioning it as a prominent domestic and global player in pipes for eco-friendly energy projects. Hyundai Steel's proactive approach aligns with its ongoing efforts to optimize its business operations and bolster profitability.In a bid to streamline its business, Hyundai Steel's latest initiative follows the establishment of a forging subsidiary in 2020 and the suspension of low-profit product facilities. With a significant focus on steel pipes, the company is poised to contribute to the expanding eco-friendly energy sector.ArticleHyundai Steel, South Korea's second-largest steel manufacturer, is taking strategic steps to fortify its business portfolio and enhance competitiveness. The company has unveiled plans to establish a steel pipe subsidiary, a move that reflects its commitment to optimizing its operations and seizing opportunities in the evolving market landscape.The decision to create this subsidiary, approved at a recent board meeting, underscores Hyundai Steel's proactive approach to business expansion. The company aims to complete the formation of this specialized entity by the end of the year. In doing so, Hyundai Steel is poised to strengthen its position not only in the domestic market but also on the global stage as a specialist in pipes designed for eco-friendly energy initiatives.Currently, Hyundai Steel already operates a steel pipe plant in Ulsan, boasting an impressive annual production capacity of 1.11 million tons. This existing infrastructure provides a strong foundation for the company's foray into the specialized realm of steel pipes.In the context of its broader strategy, Hyundai Steel's move to establish a steel pipe subsidiary aligns with its mission to bolster profitability. The company initiated this pursuit of efficiency in 2020 with the creation of a forging subsidiary. Additionally, Hyundai Steel has made strategic decisions to suspend operations related to low-profit products like pre-coated metal.Last year, Hyundai Steel's steel pipe division recorded substantial achievements, generating approximately 1.5 trillion Korean Won (equivalent to $1.12 billion USD) in consolidated sales. With this new subsidiary, the company is poised to further amplify its contributions to the ever-expanding sector of eco-friendly energy projects.ConclusionHyundai Steel's decision to establish a steel pipe subsidiary marks a strategic step towards strengthening its business portfolio and competitiveness. The company's forward-thinking approach aligns with industry trends, positioning it as a key player in eco-friendly energy initiatives, both domestically and globally.