Hyundai Steel starts its first-ever integrated furnace

DANGJIN, South Korea, Jan. 5 (Yonhap) -- Hyundai Steel Co., South Korea's No.2
steelmaker, on Tuesday started its first-ever integrated blast furnace in this
southwestern coastal city after a three-year construction period.

The company plans to start in April the commercial operations of the first blast
furnace that has an annual production capacity of 4 million tons of steel
products, according to Hyundai Steel.
Once finished, the plant, the nation's third integrated steel mill which houses
two blast furnaces, will churn out a total of 8 million tons of steel products
annually, including 6.5 million tons of hot-rolled steel sheets. The second blast
furnace is still under construction with completion due for next year.
Following the completion of the second blast furnace, Hyundai Steel expects it
will have an annual capacity of around 20 million tons. Hyundai Steel is
currently only equipped with electric furnaces that produce some 11 million tons
of steel annually, using scrap metal.
Hyundai Steel took over the facility from now-defunct Hanbo Iron & Steel Co. in
2004. Building an integrated steel mill has been known as a long-time dream for
Hyundai Group, since the days of late Hyundai founder Chung Ju-yung.
Previous attempts in 1977, 1994 and 1997 were unsuccessful due to difficult
economic conditions and the vast amounts of money needed. Hyundai Steel said
earlier around 5.8 trillion won will be invested until 2011.
Hyundai Motor Group, which owns the nation's two largest carmakers, is expected
to be one of the key beneficiaries of the mill, as its production will secure a
stable supply of steel for auto manufacturing.
Although POSCO, the country's leading steelmaker, supplies about 40 percent of
South Korea's steel needs, the country still imports the remaining steel because
the world's fifth-largest steelmaker has been the only steelmaker that has an
integrated steel mill.
South Korea is the world's sixth-largest steelmaking country, but still imports
20 million tons of steel products. In 2008, the country imported 28.94 million
tons of steel.
Hyundai Steel said earlier it plans to additionally build a third blast furnace
by 2015, which will increase its total annual production capacity to 12 million
tons.
sam@yna.co.kr
(END)