South Korea's Husteel, the steel affiliate of Shinan Group, posted incredible results last year with operating profit breaking a company record of close to 300 billion won ($235.6 million).
In the fourth quarter last year, the company also outperformed all domestic steelmakers such as Hyundai Steel, Dongkuk Steel Mill Co. and Seah Steel Corp. as well as market leader POSCO, the "eldest brother" of the industry.
The Financial Supervisory Service on Monday said Husteel last year posted sales of 1.3 trillion won, up 67.3%, and operating profit of 288.7 billion won, an incredible jump of 356.8% and an all-time company record. Its fourth-quarter operating profit of 122.4 billion won led all domestic steelmakers.
Husteel manufactures pipes for pipelines including those for oil, with output capacity of 1.2 million tons second in the country only to Seah Steel with 1.5 million. Husteel's astounding boom last year was thanks to a surge in oil pipeline exports to the US.
The US government last year raised its infrastructure investment in a move that greatly boosted the company's exports. While undergoing court receivership in 2001, Husteel was acquired by Shinan Group, which was nicknamed the "golf course" conglomerate.
By the end of next year, Husteel will complete construction of an oil pipeline plant in Cleveland, Ohio, with an investment of 124.3 billion won. The plant will make pipelines in the US, enabling it to circumvent American trade restrictions and further contribute to the company's overseas performance.
