HS HYOSUNG ADVANCED MATERIALS Partners with Tata Steel (Thailand) for Sustainable Steel Solutions

HS HYOSUNG ADVANCED MATERIALS and Tata Steel Collaboration

On June 18, 2025, HS HYOSUNG ADVANCED MATERIALS forged a strategic partnership with Tata Steel (Thailand) by signing a memorandum of understanding (MOU) aimed at enhancing their supply chain for lower-carbon steel wire materials. This landmark agreement signals a significant step forward in HS HYOSUNG’s commitment to sustainable manufacturing practices in the automotive industry.

Under the newly established MOU, HS HYOSUNG ADVANCED MATERIALS will secure a consistent and reliable supply of low-emission steel wire necessary for producing high-quality steel tire cords. These materials are critical for the manufacturing of tires that comply with growing eco-conscious demands.

Tata Steel (Thailand), a renowned subsidiary of the Tata Group, utilizes cutting-edge electric arc furnace (EAF) technology, which allows them to produce steel from recycled scrap metal. This production method is notable for being highly energy-efficient and for achieving nearly 60% lower carbon emissions compared to traditional blast furnace processes. By integrating these sustainable raw materials into their production, HS HYOSUNG ADVANCED MATERIALS aims to significantly mitigate the carbon footprint of its tire cord offerings.

The eco-friendly tire cords, projected to deliver higher profit margins than traditional steel, are expected to bolster HS HYOSUNG ADVANCED MATERIALS' competitive stance in the market. Nak Yang Seong, CEO of HS HYOSUNG ADVANCED MATERIALS, expressed enthusiasm about the agreement, stating, “We are pleased to formalize this agreement, which ensures long-term access to environmentally responsible steel.” He added that this partnership aligns with their strategy of supporting global tire manufacturers in transitioning to more sustainable materials.

The significance of high-strength steel cords cannot be overstated, especially as the electric vehicle market continues to expand. These cords not only enhance tire durability but also help maintain shape stability under various driving conditions. As demand for sustainable raw materials rises, particularly in Europe and other developed markets, HS HYOSUNG ADVANCED MATERIALS aims to ramp up the percentage of eco-friendly steel tire cords in its portfolio from the current 5% to 15% by 2027.

The company's commitment to Corporate Social Responsibility and sustainable management has been acknowledged on an international scale. In October 2024, HS HYOSUNG ADVANCED MATERIALS received the prestigious Platinum Medal from EcoVadis, placing them in the top 1% of over 130,000 global companies assessed for their environmental, social, and governance (ESG) practices. Moreover, for two consecutive years, they have been featured in the Dow Jones Sustainable Management Index (DJSI) Korea, underscoring their proactive approach to sustainability.

This long-term partnership between HS HYOSUNG ADVANCED MATERIALS and Tata Steel (Thailand) lays a vital foundation for future advancements in eco-friendly material sourcing, ensuring that both companies remain at the forefront of sustainability in manufacturing while adapting to the evolving demands of the global tire industry. As the world moves towards greener solutions, collaborations like this are essential to promote innovative practices and contribute to a more sustainable future.

In conclusion, as HS HYOSUNG ADVANCED MATERIALS continues to expand its range of sustainable products, their strategic alliance with Tata Steel (Thailand) plays a pivotal role in not only achieving internal business objectives but also in contributing positively to global environmental goals.