Dongkuk Steel Group officially split into three companies on June 1 - Dongkuk Holdings, a holding company of the business group; Dongkuk Steel, prioritizing the hot-rolled business; and Dongkuk CM, a maker of cold-rolled steel products, including color steel, establishing a two-top structure with Vice Chmn. Jang Se-wook and Chmn. Jang Se-joo.
Dongkuk Steel Group held a board of directors’ meeting for each of the three companies at the Ferrum Tower, Dongkuk Steel headquarters to approve the establishment of a holding company structure.
Dongkuk Holdings appointed Vice Chairman Jang Se-wook to be the chairman of the board of directors.
The location of Dongkuk Holdings headquarters is retained at Ferrum Tower, and disclosure of branch offices was approved to hand over worksites to related companies.
Vice Chairman Jang Se-wook plans to come up with the group’s future growth strategies at Dongkuk Holdings, a strategy control tower of the business group, along with Chairman Jang.
Chmn. Chang Se-joo discloses a vision of being a global No. 1 steel maker while touring Brazil CSP steel mill.
The two brothers plan to explore synergies in steel raw materials, parts and equipment sectors and expand the business portfolio of the group’s related businesses, such as IT and logistics, Dongkuk Holdings said.
Senior Executive Vice President Choi Sam-young was appointed to be CEO and chairman of the board of directors of Dongkuk Steel. Dongkuk Steel CEO Choi plans to accelerate efforts to upgrade an eco-friendly electric furnace as a core strategy of the initiative “Steel for Green.”
Senior Executive Vice President Park Sang-hoon was appointed to be CEO of Dongkuk CM. Two worksites — Busan plant and Doseong Center — was approved as branches of Dongkuk CM.
Dongkuk CM CEO Park plans to prioritize the establishment of selling 1 million tons of color steel products globally in accordance with the “DK Color Vision 2030.”
The vision, a mid- and long-term strategy, announced by Vice Chairman Jang Se-wook, calls for raising the production of color steel products to 1 million tons and sales to 2 trillion won by 2030.
CEO Park, an engineer, is a seasoned expert who has been with the cold-rolled steel business since he entered Dongkuk Steel.
As Dongkuk Steel Group wrapped up a spin-off, the three companies of the group are to be relisted on June 16. The business group plans to wrap up a shift into a holding company structure through public offer and investments in kind in the second half of this year.
Existing shareholders will be given new shares of Dongkuk Holdings, Dongkuk Steel and Dongkuk CM at a ratio of 16.7 percent, 52 percent and 31.3 percent, respectively.
Chairman, Jang Se-joo, coming back to management, is Dongkuk Steel’s largest shareholder with a 13.9 percent stake. His younger brother, Vice Chairman Jang Se-wook owns an 8.7 percent stake.
