Michelin Sells US Steel Cord Operations

(Akron/Tire Review) Michelin North America (MNA) has sold its steel cord plant in Scottsburg, Indiana., to Hyosung America Inc. a subsidiary of Hyosung Corp. Terms were not disclosed, but the deal includes a 10-year, $650 million supply contract in which MNA will purchase finished steel cord for tires from Hyosung America.

The plant, operating under the name American Steel Cord, employs 220 people, all of whom will be offered jobs under the new ownership, according to MNA. According to Terry Swanner, vice president of Hyosung’s North American operations, Hyosung will maintain a comparable employee compensation package.

“We have a successful track record with Hyosung that makes us confident that this is the right decision for all concerned,” said Jim Micali, MNA’s chairman and president. “In November 2002, Hyosung purchased our textile cord facility in Scottsville, Virginia. That transaction proved to be a win-win for Michelin, Hyosung and the employees. We’re looking forward to a similarly smooth transition with American Steel Cord.”
“Hyosung has been looking to increase its manufacturing presence in North America, and Michelin’s Scottsburg plant provides us with the perfect opportunity,” said Mr Swanner.

”In addition to our recent production expansion in China, this will enhance Hyosung’s position as a world leading supplier of tire reinforcement products. This transaction demonstrates Hyosung’s commitment to its clients, to work with them to jointly identify innovative and breakthrough opportunities to improve quality, reduce costs and optimize invested capital in the supply chain.”