On May 28, 2021, Shanghai Hongji Metal Products Co., Ltd (herein after “Shanghai Hongji”) announced that it  has completed the acquisition of Jiangsu Hyundai Special Steel Co.,Ltd (herein after “Jiangsu Hydundai”).

As a subsidiary of Hydundai Motor Group, Hyundai Special Steel has been enegaged in special steel business for more than 40 years since its establishment in 1979 and is a world-leading company in special steel industry. Jiangsu Hyundai, a Chinese subsidiary of Hydundai Special Steel that established in 2015 in Yancheng Jiangsu Province, with a registered capital of $49 Million USD, specializes in providing cold heading steel wire business in Chinese market.    

Its main products are CHQ wire for auto parts, with an annual output of 60,000 tons. It provides 4-36mm cold heading raw materials for many well-known auto parts manufacturers in China. It is mainly used in the production of auto bolts, nuts, ball studs and bearings. Due to its high quality, it has won the long-term trust and support of many customers.

（Picture 1：Plant of Jiangsu Hyundai）

（Picture 2：Main Products of Jiangsu Hyundai）

The signing ceremony of the acquisition was completed in Shanghai PwC center on March 15, 2021. Shanghai Allbright Lawyer Offices provides legal for the acquisition. At the signing ceremony, Steven Xie, the CEO of Hongji Metal, said, "This is a new starting point for Jiangsu Hyundai, and also the beginning of Shanghai Hongji to comprehensively deepen the upstream and downstream industrial chain. I believe that with the participation of Jiangsu Hyundai, we will form a better joint force. Over time, we will show better results in the market. "

Park Seong Bae, general manager of Jiangsu Hyundai, said, " Korea Hyundai will continue to support Jiangsu Hyundai to produce higher quality products, and will join hands with Hongji to further improve the customer satisfaction of Jiangsu Hyundai Special Steel."

Apartner of PwC China, who provides third-party consultation for the transaction, mentioned that, "Jiangsu Hyundai Special Steel is a leading enterprise specializing in China's cold heading steel wire business, and Hongji is an influential world -class supplier of cold forging and stamping products and solutions. This acquisition is a win-win choice. "

（Picture 3：Acquisition Signing Ceremony）

For Hongji, the merger is not only another expansion of its territory, but also a new starting point for deepening its upstream and downstream industrial chain. It can bring huge synergy from the aspects of sales network expansion, supply chain integration, technology exchange and cost control. Hongji adheres to the core value of putting "customers" first. Since the second half of 2020, the fluctuation of raw material market has brought great challenges to the stability of supply chain. This acquisition can not only strengthen Hongji's ability to control the price and quality of raw materials, but also obtain the technical support from Hyundai of Korea to Hongji, so as to better provide its customers with a more stable supply chain.

About "Hongji Metal"：

Founded in January 2000, Hongji Metal is a manufacturing enterprise with its headquarters located in Shanghai, China. Currently, Hongji Metal has 6 production bases, which are located in: Jiading Shanghai, Taicang Jiangsu, Dafeng Jiangsu, Yancheng Jiangsu and Fengxian Shanghai. It has more than 800 employees. Believing in the core values ??of "Customers First, Innovation, Pragmatism and Continuous Effort", Hongji specializes in providing fasteners, stamping parts, deep drawing parts and other metal parts and solutions for customers in the automotive, security and other industries.