Hyundai Steel suspends planned mill closures

In the face of strong opposition from the South Korean government and local unions, Hyundai Steel has temporarily halted its plan to close its No. 2 steel plant in Pohang, South Korea. The decision complicates the current operational challenges faced by Modern Steel, which stressed that it would continue negotiations to ensure stable employment for existing employees.

In November 2024, Hyundai Steel said it was considering closing its No. 2 steel plant in Pohang. The plant has an annual capacity of 1 million tons of crude steel and a rolling capacity of 700,000 tons of small section steel for construction.

According to local media reports, the plant's steel output has dropped from 680,000 tons in 2022 to 510,000 tons in 2024, and its rolled timber output has dropped from 390,000 tons to 230,000 tons, while operating days have been shortened from 304 days to 228 days. As a result, the plant's manufacturing costs have increased from KRW 990,000 per ton (about $732 per ton) in 2022 to KRW 1.13 million per ton (about $768 per ton) in 2024.

Hyundai Steel said that South Korea's ongoing economic recession has made the country's construction industry, which has been a major consumer of steel products, somewhat poor performance. In the face of these challenges, Modern Steel companies are focusing on increasing their competitiveness by meeting the growing demand for high value-added steel products and developing carbon reduction solutions.

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