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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Hyundai Steel has announced the closure of half of its rebar facilities at its Incheon plant, reducing the company’s overall rebar production capacity from 3.3 million tons to 2.5 million tons, a 25% decrease. As part of this restructuring, Hyundai Steel will convert one production line at its Pohang Plant 1 exclusively for rebar production.
On January 20, Hyundai Steel stated that it will shut down the electric steelmaking and small rolling (rebar) facilities at its Incheon plant, which account for an annual production of 800,000 tons. The Incheon plant has two rebar production lines, and the company will close one of them.
Following the closure, the Incheon plant’s annual rebar output will fall from 1.55 million tons to approximately 700,000 tons. Hyundai Steel’s combined rebar production across Incheon, Dangjin, and Pohang plants was previously 3.3 million tons per year, and the Incheon closure will reduce total capacity to 2.5 million tons.
Hyundai Steel will continue to operate its 70-ton rebar facilities at Incheon, which can produce a wider variety of rebar sizes compared with the 90-ton facilities being closed.
In addition, the company has recently consolidated the rebar and special steel bar lines at Pohang Plant 1 into a dedicated rebar production line. This measure aims to enhance production efficiency in response to the depressed rebar market. The Pohang Plant 1 is considered highly efficient and competitive in rebar manufacturing.
The Ministry of Trade, Industry, and Energy announced in November last year measures to strengthen the competitiveness of the steel industry, designating rebar facilities as a key target for voluntary capacity adjustments by companies. Hyundai Steel’s move mirrors broader structural adjustments in the petrochemical sector, such as the reduction of naphtha cracker units, aimed at controlling supply in a sluggish market.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
