Hyundai Steel to Sell Electric Furnace Hot Rolling Facilities at Dangjin Steelworks Due to Sharp Decline in Orders

[Asia Economy Reporter Dongwoo Lee] Hyundai Steel is planning to sell the electric furnace hot rolling facilities at its Dangjin Steelworks in Chungnam. This is due to a sharp decline in orders caused by the prolonged COVID-19 pandemic.

According to the steel industry on the 26th, Hyundai Steel recently held a labor-management council meeting and informed the labor union of its intention to sell the electric furnace hot rolling plant facilities.

Workers who were employed at the electric furnace hot rolling plant are expected to be reassigned to other plants or departments. The plant site is planned to be used for storing steel scrap and coils.

Unlike blast furnaces that extract molten iron from raw materials such as iron ore, electric furnaces produce rebar and other products by heating steel scrap. In recent years, the price of steel scrap has risen, significantly worsening the profitability of electric furnaces.

As orders decreased, Hyundai Steel had already suspended operations at the Dangjin Steelworks electric furnace hot rolling plant starting from the 1st of this month.