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SEOUL, KOREA- Hyosung Group is in talks with Italy's Pirelli Tyre SpA to take over the latter's tire reinforcement materials division. According to industry sources on September 1, Hyosung is mulling an acquisition of the unit of the world's No. 5 tire maker. Hyosung, the world's largest polyester tire cord manufacturer, is currently negotiating directly with Pirelli's controlling shareholders without hiring any underwriters.
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Monday, September 2nd, 2013
A person close to the deal said, "Hyosung is pushing for acquisition of Pirelli's tire reinforcement materials unit as part of its strategy to increase its presence in Europe."
Tire reinforcement materials are made from steel and artificial fibers. These include steel cord fabric, steel wire, polyester cord fabric, rayon cord fabric, nylon cord fabric, aramid cord fabric, and PEN (polyethylene naphthalate) cord fabric. These materials are used for manufacturing carcasses, belt plies, cap plies, and bead for tires for automobiles, bicycles, motorcycles, and other vehicles.
For the past several years, Hyosung has been busy taking over tire reinforcement materials companies all over the world. For example, it acquired in 2006 four tire reinforcement materials makers in the United States, South America, and Europe including a tire cord unit of Goodyear Tire & Rubber. In 2011, it bought up two more steel cord plants previously owned by Goodyear.
