Memorandum Marks Milestone in Material Modernisation

In a move reflecting the global shift toward low-carbon manufacturing, HS Hyosung Advanced Materials and Tata Steel (Thailand) signed a landmark memorandum of understanding on June 18. The agreement ensures a stable, long-term supply of low-emission steel wire materials used in the production of high-strength steel tire cords, essential components in both conventional and electric vehicle tires. Executives Nak Yang Seong and Tarun Daga, representing HS Hyosung and Tata Steel (Thailand) respectively, jointly announced the initiative during a commemorative signing event.

Electric Arc Efficiency Empowers Emissions Elimination Efforts

Tata Steel (Thailand), a subsidiary of the Indian conglomerate Tata Group, utilises electric arc furnace technology to produce steel from recycled scrap metal. EAFs are significantly more energy-efficient than traditional blast furnace operations and emit approximately 60% less CO₂. This makes the steel particularly suitable for downstream applications that demand both performance and sustainability. “Our partnership ensures a secure and environmentally responsible supply chain,” said Nak Yang Seong. “It aligns with our vision to lead in the global green transformation of automotive components.”

Cordial Collaboration Catalyses Clean Component Capability

HS Hyosung is one of the world’s foremost producers of steel tire cords, which are critical reinforcement materials used by major tire makers worldwide. These cords enhance tire integrity, reduce deformation, and increase rolling efficiency. The transition to EVs has increased demand for tire cords that can withstand heavier vehicle loads and torque. By sourcing cleaner steel, HS Hyosung will be able to manufacture tire cords with significantly reduced embodied carbon—helping customers comply with stringent ESG targets set by regulators and end-users.

Green Growth Gains Momentum in Global Gigatrend Markets

Eco-friendly steel tire cords have become a key growth area for HS Hyosung, particularly in Europe and North America, where carbon transparency is now a regulatory requirement. The company plans to increase its eco-steel product share from 5% in 2025 to 15% by 2027. “OEMs are demanding materials with verified low carbon footprints across the supply chain,” said a senior product development executive. “This MoU ensures that we can consistently meet those expectations, especially for markets governed by EU taxonomy and CBAM (Carbon Border Adjustment Mechanism) rules.”

Strategic Sustainability Spurs Superior Shareholder Value

In addition to environmental benefits, eco-friendly tire cords offer higher margins due to their premium status in sustainable procurement strategies. As global tire manufacturers invest in circularity and sustainable raw materials, suppliers like HS Hyosung who can provide traceable, low-CO₂ products stand to benefit commercially. Analysts anticipate that long-term agreements such as this will strengthen the company’s pricing power, reduce volatility in raw material sourcing, and enhance brand equity in sustainability indices and investor ESG portfolios.

Environmental Excellence Endorsed by ESG Evaluators

HS Hyosung’s environmental stewardship has received international recognition. In October 2024, the company was awarded the prestigious Platinum Medal by EcoVadis, placing it among the top 1% of over 130,000 global companies assessed for ESG performance. In December 2024, HS Hyosung was included in the Dow Jones Sustainability Index (DJSI) Korea for the second consecutive year, underlining its leadership in ethical sourcing, climate risk management, and sustainable innovation.

Regional Resilience Reinforced Through Resource Realignment

With Tata Steel (Thailand)’s production base strategically located in Southeast Asia, the MoU also enhances regional supply chain stability. The geographic proximity allows for reduced transportation emissions and faster turnaround times, supporting just-in-time production strategies. Furthermore, the use of recycled feedstock not only reduces CO₂ but also diminishes dependence on virgin iron ore, contributing to natural resource conservation. Tarun Daga emphasized, “This collaboration exemplifies the potential of regional integration for global sustainability goals.”

Forward-Facing Framework Fuels Future Fabrication Frontiers

Looking ahead, the partnership may evolve into co-development of next-generation tire cord materials, tailored for high-performance EV applications such as ultra-lightweight cords or hybrid steel-composite reinforcements. HS Hyosung has already begun pilot-scale production of tire cords using mixed metallic filaments designed to further reduce weight without sacrificing strength. With global automakers racing toward net-zero supply chains, innovations from partnerships like this one are likely to define the material science of the next decade. “This MoU is not just about buying steel,” said a spokesperson. “It’s about building the future of climate-smart mobility.”

Key Takeaways:

• HS Hyosung Advanced Materials has signed an MoU with Tata Steel (Thailand) to source low-CO₂ steel wire for eco-friendly tire cords, using energy-efficient EAF technology

• The deal supports Hyosung’s goal of increasing its eco-steel tire cord market share from 5% in 2025 to 15% in 2027 amid rising demand from EV and ESG-driven markets

• The partnership reinforces Hyosung’s sustainability leadership, already recognised by EcoVadis (Platinum Medal) and DJSI Korea inclusion for two consecutive years