Hyundai Steel will build a third-generation steel plate production facility in preparation for the era of electrification and establish a subsidiary specializing in steel pipes, Hyundai Steel Pipe, to secure a future growth driver.
The company took the wraps off the blueprints through its third-quarter earnings announcement on Oct. 25 and expressed its commitment to diversifying its business.
Specifically, the company plans to build a third-generation steel plate production facility with improved formability while maintaining the strength of existing ultra-high tensile steel, and to start commercial production in the second quarter of 2025. This move aims to proactively respond to market demand.
Hyundai Steel expects the electric vehicle market to grow in 2025 when a third-generation steel plate will be introduced to the market. As design will become an important factor in the upwardly leveling electric vehicle market, orders will surge for third-generation steel plates that maximize formability.
The steelmaker will also concentrate on producing low-carbon products to realize carbon neutrality. Hyundai is currently carrying out civil engineering and facility construction work to build a pre-melting electric furnace. The completion of the work is scheduled for September 2024.