Hyundai Steel, 1Q Operating Profit Turns Positive at 55.8 Billion Won..."Focusing on High-Value-Added Product Development"

Hyundai Steel announced on the 30th that it recorded an operating profit of 55.8 billion KRW on a consolidated basis in the first quarter, turning to a profit. Sales decreased by 14% compared to the same period last year to 5.9478 trillion KRW, and net profit dropped by 60.5% to 32.2 billion KRW.

Compared to the previous quarter, sales decreased by 15.64 billion KRW (1.6%), but operating profit increased by 284.9 billion KRW. Hyundai Steel explained that profitability improved through reflecting cost increases in sales prices and cost reduction efforts.

To secure stable profitability, Hyundai Steel is actively responding to new demand markets. It plans to build an electric vehicle dedicated Steel Service Center in Georgia, USA, with a completion target in the third quarter of this year, to respond to the demand for steel sheets due to the global expansion of electric vehicle sales and to establish a local sales base. Additionally, to meet the demand for high value-added thick plates, it will complete the expansion investment of the heat treatment furnace at Dangjin No. 1 thick plate plant by the end of this year and expand product sales.

Hyundai Steel is establishing a production system for third-generation steel sheets that are lighter and stronger than existing automotive steel sheets to respond to automotive lightweighting, and is continuously developing materials for electric vehicle reduction gear parts in line with the electrification transition of automobiles.

With the enlargement of offshore wind power generation facilities and increasing demand, Hyundai Steel plans to develop large thick plates and specialized materials, and expand the market by supplying steel for domestic and overseas offshore wind power projects, such as the Yeonggwang Nakwol offshore wind power complex in Korea and the offshore wind power project in France.

A Hyundai Steel official stated, "We plan to actively respond to new demand arising from environmental changes in front-end industries such as automotive and energy, develop and increase sales of high value-added products, and improve profitability."