Hanil Cement and Hyundai Cement became one company to begin a journey to a brighter future. In the bid to acquire Hyundai Cement in February, Hanil Cement formed a consortium with LK Investment Partners to participate as a strategic investor (SI) and was selected as a priority negotiation party.

The bid was highly competitive, with Korean cement companies and private equity funds looking for ownership. Hanil Cement won a cutthroat competition, submitting a bid that was higher by only 10 billion to 20 billion Korean compared to that of second-highest bidder. After being selected as the priority negotiation party, Hanil Cement underwent five months of acquisition procedures to complete the process on July 18. The company set up HLK Holdings, a special-purpose company (SPC), with LK Investment Partners to acquire Hyundai Cement.

Hyundai Cement was founded as the Cement Business Department of Hyundai Engineering and Construction in 1958 and built a manufacturing plant in Danyang in 1964 with an annual production capacity of 200,000 tons. It became independent from Hyundai Engineering and Construction in 1969, and currently owns plants in Danyang and Yeongwol, with an annual cement production capacity of 5.5 million tons.

Hyundai Cement manufacturing plants are the newest among production sites operated by the seven cement companies in Korea, giving them the highest efficiency. The compact plant structure also facilitates management and maintenance processes.

Hanil Cement expects that this acquisition will be an opportunity to exchange operational and sales know-hows of the past fifty years, which will enhance productivity and generate new profits.

Hanil Cement will maintain its sense of responsibility as a Korean cement company to develop the Korean cement industry in the long term, instead of simply seeking to generate profits.