Dongbu Steel’s Shareholders Authorizes Wire Unit Spin-off

South Korean steel maker, Dongbu Steel announced extraordinary shareholders meeting approved proposed spin-off of steel wire and bar business unit on Thursday. The new company, Dongbu Special Steel starts in January 2011 based on the unit with estimated around 350 billion won of annual sales in 2010. The new company will improve the efficiency and seek higher value as specialized function company for better competitiveness.

The new company with 20 billion won of capital has 193.17 billion won of total assets. The company expands the business in volume and quality when the demand will increase for bolt, nut, shaft and bearing applications in parts of automobile, appliances and industrial machinery.

The new company will expand the annual output capacity from current 280,000 tonnes to 500,000 tonnes level by end of 2012. The firm also develops higher valued products along with the major items of steel wire for cold heading and cold drawn steel bar.