Hyundai Steel on Thursday said its new furnace would specialise in steel plates for Hyundai Motor Group vehicles to meet demand for higher quality products and boost the group’s synergy.

The move will strengthen the group’s integrated supply chain, with Hyundai Steel providing crude steel and hot-rolled plates and Hyundai Hysco supplying cold-rolled plates to the country’s top two automakers Hyundai Motor and Kia Motors, Reuters reported, citing a Hyundai Steel statement.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

South Korea’s second largest steelmaker after POSCO in January started its first blast furnace with an annual production capacity of 4m tonnes of steel.

Hyundai Steel, which mainly produces rebar and H-section for the construction sector, has been developing automotive steel plate technology since 2007.

It has invested 6.23 trillion won (US$5.55bn) since 2006 to build two furnaces with an combined annual production capacity of 8m tonnes, more than the originally planned 5.84 trillion won due to rising raw material costs, the statement said.

The second furnace will start operation from November, over one month earlier than planned. The two new plants will boost the company’s total annual crude steel output, including output from mini mills, to 19.5m tonnes, the statement added.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Hyundai Steel is currently considering building a third furnace with an annual capacity of 4m tonnes, according to the statement.

The company had planned to complete construction by 2015 but the timing has not yet been confirmed, a company spokesman told Reuters.