Hyosung wins $350 mln order from Michelin

SEOUL, Nov 26, 2002 ; Reuters reported that South Korea's Hyosung Corp said on Tuesday it had won a $350 million order from Michelin to supply tyre cords and agreed to acquire a U.S. plant from the French tyre maker for an unspecified amount.

Hyosung, the world's largest polyester tyre cord maker, said in a statement its U.S. unit, Hyosung America Inc, would acquire Michelin's tyre cord plant in Virginia. It did not disclose the terms of the acquisition.

The acquisition would enable Hyosung to "secure a production point to enter the North American market", the South Korean company said in a statement.

The first shipment under the seven-year contract is scheduled to begin next year, a Hyosung spokesman told Reuters.

The South Korean company said in the statement it expected to increase its North American market share of tyre cords to 20 percent from the current 13 percent, while global market share would rise to 24 percent from 20 percent.

Hyosung shares had surged 500 won, or 4.1 percent, to 12,700 won by 0445 GMT, while the benchmark stock index had lost 0.63 percent.

Last year, Hyosung, which is also South Korea's largest textile company, said it would invest $30 million to build a polyester yarn plant in China. The plant, located in Jiaxing, will begin output in March 2003, rolling out 11,000 tonnes of polyester yarn a year.