[Asia Economy Reporter Jeong Dong-hoon] Hyundai Steel recorded its highest-ever performance last year, driven by price increases in key products such as automotive steel sheets and shipbuilding heavy plates, as well as strengthened business competitiveness.
On the 27th, Hyundai Steel announced that its consolidated sales for last year reached KRW 22.8499 trillion, with an operating profit of KRW 2.4475 trillion.
This performance appears to be due to price increases in major products such as automotive steel sheets and shipbuilding heavy plates amid a favorable global steel market, along with business competitiveness enhancement through adjustments in low-profit businesses such as thin hot-rolled steel and color steel sheets.
Hyundai Steel stated, "Despite the forecasted global economic slowdown this year, we plan to optimize sales operations in line with the recovery of demand industries and further strengthen profitability-centered business competitiveness to maintain a stable high-profit trend." Hyundai Steel has set strengthening the global supply of automotive steel sheets as a key goal for this year. Through this, they aim to achieve sales of 1 million tons of automotive steel sheets in 2023.
In the heavy plate sector, responding to the mid-to-long-term increase in LNG demand due to air pollution regulations, Hyundai Steel plans to establish a mass production system for 9% nickel steel, which is gaining attention as a material for LNG vessels, and strengthen capabilities to meet demand not only for shipbuilding but also for onshore storage tanks. In the long products sector, they plan to improve customer purchasing convenience and expand new demand through the development of an e-commerce platform for construction structural steel, while the pipe sector will respond to offshore wind power projects by establishing cooperative systems with specialized companies from raw materials to pipe manufacturing and modularization.
Regarding business competitiveness enhancement, following innovation activities in the manufacturing sector in 2020, Hyundai Steel plans to promote 'field-centered innovation internalization' this year based on company-wide expanded innovation activities. To this end, core tasks have been selected by business division, with the CEO directly managing innovation activities. They plan to strengthen manufacturing competitiveness through initiatives such as 'field-centered equipment robustness' and 'establishing autonomous improvements and nurturing specialized talent.'
Additionally, the transition to a 'profitability-centered steel company' through business and organizational restructuring will continue. In this regard, Hyundai Steel is developing a 'company-wide information system' aimed to be operational in 2023 for strategic decision-making, preparing for a smart work style transition including flexible production and sales responses based on data algorithms.
In the research and development (R&D) sector, following last year's developments including high-performance ultra-high-strength steel for automotive use, cryogenic steel for LNG market response, 700 MPa-class high-strength seismic rebar, and seismic and fire-resistant H-beams, Hyundai Steel plans to continue developing future industry new technologies, high-performance new products, and eco-friendly technologies for sustainable growth in 2022.
First, they will develop low-carbon new raw materials in response to carbon neutrality and the hydrogen society, while promoting the development of future mobility materials and components, focusing on future-oriented new technology development. By maximizing capabilities in automotive steel fields such as high-formability ultra-high-strength steel and high-toughness hot-stamping steel, and enhancing production technology efficiency including byproduct recycling, they plan to advance technology development in line with changes in the industrial ecosystem such as realizing a 'Green Factory.'
Meanwhile, Hyundai Steel will continue ESG investments to build an eco-friendly steelworks in 2022. They are preparing to start construction of three dry quenching facilities for coke and three coke clean facilities in the second half of this year. With these eco-friendly facility investments, after all three are completed by 2025, they expect to reduce annual carbon emissions by 500,000 tons and decrease air pollutants by about 60% compared to existing facilities.
A Hyundai Steel official said, "We improved profitability through efforts to strengthen competitiveness by raising prices of key products and adjusting low-profit businesses," adding, "In 2022, under the management policy of becoming a 'sustainable and eco-friendly steel company,' we will strive to grow into a leading global eco-friendly steel company."
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