South Korea's largest steel pipe producer, Shiya Steel, reported to the Korea Financial Supervisory Authority on August 1 that the company will acquire South East Asia Steel.

It is understood that East Asia Steel's third-quarter sales will reach 26.1 billion won (about 23 million US dollars), and the value of 18.62 trillion won (about 16.456 billion US dollars) will be sold to Shiya Steel.

In December last year, Shiya Steel took over the non-performing loans of East Asia Steel Corporation and is expected to complete the acquisition of East Asian Steel Corporation by the end of this year.

In June last year, East Asian Steel Corporation entered the court bankruptcy liquidation process. Before the court took over, East Asia Steel's monthly steel pipe sales ranged from 15,000 tons to 18,000 tons. The industry believes that Shiya Steel will only re-cultivate its customers and eliminate the non-performing loans of East Asian Steel Corporation to return it to normal operation. They added that in this case, competition among Korean domestic structural steel pipe producers will intensify.