Notification to Employees... Labor-Management Consultation Scheduled
"For Efficient Operation and Profitability Improvement"
Amid a continued steel industry downturn caused by low-cost imports from China and decreased demand, Hyundai Steel is considering the closure of its Pohang Plant 2 in Gyeongbuk.
According to the steel industry on the 14th, Hyundai Steel has decided to halt operations at Pohang Plant 2 and has informed its employees of the related details.
A Hyundai Steel official explained, "We are reviewing this to achieve efficient production management and improve profitability," adding, "We plan to proceed through amicable negotiations between labor and management, and nothing has been finalized yet."
Hyundai Steel Dangjin Plant panorama. Photo by Asia Economy DB
The plant scheduled for closure includes facilities related to steelmaking and rolling processes. The production capacity of the steelmaking line and rolling line are 1 million tons and 700,000 tons respectively, accounting for about 3% of Hyundai Steel's total production volume.
This decision was made amid a continued decline in operating rates due to the sluggish steel market and aggressive low-priced products from China. In the third quarter, Hyundai Steel recorded an operating profit of 51.5 billion KRW, down 77.4% compared to the same period last year.
Hyundai Steel also filed an anti-dumping petition on July 31, citing damages caused by low-priced hot plate exports from Chinese companies.
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