POSCO expands its range of high-value-added products
Hyundai Steel to begin construction of an integrated steel mill in the USA
Korea’s steel industry is slowly emerging from a slump
Hyundai Steel announced that it recorded KRW 22.7332 trillion in sales and KRW 21902 billion in operating profit on a consolidated basis last year. Although its sales fell 2.1% from the previous year (KRW 23.22 trillion), its operating profit rose 37.4% from KRW 159.5 billion. It is explained that the cost-reduction effects resulting from declining iron ore and coal prices and lowered steel-product export freight rates led to improved profitability.
POSCO successfully rebounded last year, recording KRW 1.78 trillion in operating profit in its steel sector (on a separate basis), an approximately 20% increase from the previous year (KRW 1.473 trillion). This was achieved by increasing the proportion of high-value-added automotive steel and electrical steel and normalizing selling prices to increase profitability.
POSCO is strengthening its North America automotive steel plate supply network through partnerships, including equity investments, with Cleveland-Cliffs, the No. 2 steelmaker in the United States. Meanwhile, in India, POSCO plans to pursue the establishment of a joint integrated steel mill with JSW, the No. 1 steel maker in India, to directly meet growing market demand.
In Korea, Pohang Steel Mill will specialize as a base for energy and structural steel plates, and Gwangyang Steel Mill for automotive and electrical steel plates ― while reducing energy and improving facility efficiency at the same time. It also plans to respond to environmental regulations such as the Carbon Border Adjustment Mechanism (CBAM) by accelerating investment in decarbonization facilities, including the construction of a hydrogen-reduced steel demo plant and the completion of the Gwangyang electric furnace.
Hyundai Steel and POSCO are partnering to build an electric arc furnace-based integrated steel mill in Louisiana, USA, with a total investment of KRW 8.5 trillion, to establish a local automotive steel plate production system. It is planned to begin construction in the third quarter of this year, with the goal of starting commercial production in the first quarter of 2029. The company intends to respond to global demand for low-carbon steel plates for complete vehicles while increasing supply to North American factories of Hyundai Motor Company and Kia.
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