Yonhap reported that a consortium led by Hyundai Steel Company of South Korea has purchased Dongbu Special Steel Company as part of ongoing efforts to strengthen its competitive edge.

The purchase worth KRW 294.3 billion comes a month after the consortium was tapped as the preferred bidder for the special steel company.

The consortium consists of Hyundai Steel, Hyundai Hysco Company and Hyundai Wia Corporation affiliates of Hyundai Motor Group, the world's fifth largest automotive conglomerate. It outbid SeAH Group which had also been interested in the special steel company.

Hyundai Steel holds a 50% stake in the consortium, with Hyundai Hysco and Hyundai Wia Corporation. Owning 40% and 10% each.

Hyundai Steel said that the acquisition of Dongbu Special Steel will help it with the vertical integration process of making parts needed for automobiles, and augment a special steel facility being built at its main Dangjin plant, some 123 kilometers south of Seoul. This plant will start its operation in 2016.

The Hyundai consortium bought the mill from Korea Development Bank which took ownership of it after paying Dongbu Group KRW 110 billion. Dongbu Group used the money to repay its debts and push forward conglomerate wide restructuring.