January 25, 2011,09:06 +0900(JST) Pledging Success of Steel Tire Cord Joint Venture
At the end of last year, Sumitomo Electric Industries, Ltd. announced that the company had agreed with Hyosung Corporation (Hyosung), a leading Korean manufacturer of textile tire cord, to jointly set up a new steel tire cord manufacturing company in Thailand, and that the company would expand its business in China by acquiring a 30% stake in a Hyosung Chinese subsidiary. In this connection we last week received a visit from the top executives of Hyosung, including Vice Chairman Sang-Woon Lee.
At the beginning of the meeting, pledging the success of the joint venture, Mr. Lee and I firmly shook hands and exchanged commemorative gifts. From Hyosung we received sterling-silver figurines of sun, clouds, mountain, rock, river, pine tree, turtle, crane, deer, and an herb considered an elixir of life. In South Korea it is believed that collecting 10 such auspicious objects will make your wish most powerful. In return, Sumitomo Electric presented Hyosung with a sterling-silver fan with motifs of pine, bamboo and plum trees depicted on it, wishing that the joint venture will grow more and more prosperous, like the fan broadens towards the ends.
Hyosung is a leader in the textile cord market, enjoying a global market share of over 40%. By combining Hyosung’s strong sales network, covering most major international tire manufacturers, with our outstanding technological capabilities, we plan to expand our business in ever-growing Chinese and ASEAN markets.
The Sumitomo Electric Group currently manufactures its steel tire cords in Japan and Indonesia, but the Group has been considering increasing its manufacturing bases to four countries, thereby doubling its production capacity.
We have just begun taking concrete actions. Deepening the relations of trust between the two companies, we will work together to ensure that the pledge we made this day will bear great fruit.