Seeking for High Value-added
According to industry sources, POSCO is renovating the fifth blast furnace in its steel mill located in Gwangyang City while overhauling its production systems as a whole. The blast furnace, which had been put into operation in May 2000, has produced approximately 50 million tons of molten metal. POSCO recently shut down the furnace and is planning to reopen it in May this year.
In the meantime, Hyundai Steel is currently working on the stabilization of the continuous galvanizing line (CGL) in its plant in Dangjin City, South Chungcheong Province that was put into operation early this year. The CGL is expected to add 500,000 tons to the company’s annual advanced high-strength steel production volume. At the same time, the steelmaker is concentrating on the development of automotive steel sheets to be supplied for use in high-end cars manufactured by Hyundai Motor Company, its parent company. Hyundai Steel started the operation of its special steel manufacturing plant with an annual production capacity of one million tons in Dangjin last month, too.
Dongkuk Steel is also planning on business restructuring and reorganization with its thick plate business having turned into a surplus in the fourth quarter of last year. This year, it is going to complete its investment in the CSP steel mill in Brazil and start its operation in the second quarter for a higher level of competitiveness in thick plate business. Although the initial firing process is behind schedule, the steel mill in Brazil is expected to become a new growth driver of Dongkuk Steel once put into operation. The steel mill is to supply high-quality slabs so the company can increase its thick plate production volume. It is focusing on the production of high-strength rebars and rebars for use in nuclear power plants as well.
Last year, the three companies managed to increase their profits with premium products in spite of the severe recession in the industry. POSCO and Hyundai Steel recorded operating profit ratios of 8.9% and 10.1% in their steel business, respectively. Dongkuk Steel posted a surplus for the first time in three years, too.