SeAH Steel Holdings (CEOs Lee, Joosung and Jo, Youngbin) is moving to expand the market competitiveness of its structural pipe business through the integration of structural pipe operations within the group.

SeAH Steel Holdings announced on the 11th that it will restructure its structural pipe business by integrating SSIK (SS IK), a specialized distribution company for structural pipes, and Dong-A Steel, a structural pipe manufacturing company, into SeAH Steel. This business restructuring involves SeAH Steel acquiring 100% of SSIK shares¹ from SeAH Steel Holdings for approximately 83.4 billion Won, with the aim of maximizing integrated synergy in the manufacturing, distribution, and sales sectors of the structural pipe business that were previously operated individually within the group.

Amid intensifying market competition due to the mass influx of Chinese structural pipe products, SeAH Steel Holdings established a 'Structural Pipe Business TF' organization last year and has been reviewing various ways to secure business synergies for establishing a sustainable growth strategy for the structural pipe business. It is believed that this integration of the structural pipe business into SeAH Steel will not only expand the synergies of its own structural pipe business but also have a positive effect on enhancing the competitiveness of the domestic structural pipe industry.

In fact, as the structural pipe market has a low barrier to market entry compared to piping and energy-oriented steel pipes, making it a market where securing a variety of products, rapid logistics, and price competitiveness are important. Through this restructuring of the structural pipe business, SeAH Steel Holdings plans to secure product price competitiveness by 'eliminating overlapping inefficiencies' and 'improving logistics systems', and to create integrated synergies in terms of sales and marketing, such as 'securing a stable sales distribution network' and 'providing a wide range of steel pipe portfolios'. In particular, from a broader perspective, by supplying proven, high-quality structural pipes with price competitiveness to the domestic market, it is expected to have a positive impact on resolving construction material quality issues caused by the mass influx of Chinese structural pipe products.

A SeAH Steel Holdings official said, "This business restructuring will be a turning point for creating integrated synergy and maximizing operational efficiency in the structural pipe business that was previously dispersed within the group," adding, "Based on the high customer trust of SeAH Steel, the number one steel pipe manufacturer in Korea, we plan to lead the structural pipe market and pursue continuous growth."

¹ SSIK is a company engaged in the structural pipe distribution business, holding 100% of the shares of Dong-A Steel, a specialized structural pipe manufacturing company. By acquiring SSIK's shares, SeAH Steel is expected to incorporate the structural pipe distribution company SSIK and the manufacturing company Dong-A Steel under SeAH Steel.