TYPE OF SALE
Dongkuk Steel appointed Hilco to sell their Heavy Plate Mill at the Pohang works. After trying to sell this Mill as a complete Heavy Plate Mill, we discovered that its capacity was too big for most buyers; we came close to selling it as a complete line a few times, but when the buyers found out what the cost for relocation and modification were, they decided against it. In July 2020, Dongkuk Steel agreed to sell the individual items in the Heavy Plate Mill and reduced the asking price.
EQUIPMENT
This Heavy Plate Mill, with a capacity of 2 Million ton per year, was built in the 80’s by Davy (now Primetals) and shipped to a Mexican buyer. The Mexican buyer did not install it, due to a lack of funds. After a few years Dongkuk Steel, with the help of Davy, purchased the Heavy Plate Mill and relocated it to Pohang and modified it to fit their requirements. In the early 2000’s SMS and Primetals upgraded the Plate Mill. The total weight of the Heavy Plate Mill was 45.000 ton.
TRANSACTION
Soon after we started our marketing campaign, a few Korean investors showed strong interest in acquiring the complete Heavy Plate Mill and we organized a Tender Sale for all interested parties and ended up selling the complete Heavy Plate Mill to the highest bidder in early 2021.
HIGHLIGHT
Selling the Mill in its entirety in the middle of the Covid Pandemic was a great success. We had not expected to sell it that quick after the price was reduced.
CONCLUSION
The tender process helped to conclude a sale and despite the pandemic, the timing turned out, to be right.
