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Welcoming a Year of Challenges and Hopes
Hyundai Steel vows to enhance its competitiveness in order to become a frontrunner in the steel business
Welcoming a Year of Challenges and Hopes
  • By matthew
  • January 15, 2010, 11:40
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“The year 2010 means a year of challenges and hopes to Hyundai Steel,” said Park Seung-ha, President of Hyundai Steel in his New Year’s message to employees. “This is because the company will enter the first stage of the integrated steel business. In the near future, we will see vehicles and vessels made of our steel products around the world,” he said.

Hyundai Steel picked “Takeoff and Change” as its management goal for 2010, aiming to be reborn as a stronger company and one that can withstand any hardship. “To accomplish this goal, I will suggest three major directions for better performances in 2010,” Park said.

Park went on to say, “The most important thing in 2010 is to stabilize the integrated steel mill business as early as possible.” He added, “All employees should do their best until the last moment so that we can make our three-year-long effort pay off handsomely this year.” He continued, “We have to secure commercial production systems by normalizing operations as soon as possible. We also should position ourselves in a new market through quality stabilization and thorough preparations for customers.”

He also stressed the need for the company to reinforce its R&D capabilities in order to develop new products as well as ensuring customers understand that Hyundai Steel now possesses a full-scale blast furnace production system.

Park also emphasized the importance of the electric arc furnace business. “We should expand our position in the electric arc furnace business. Our electric arc furnace business should play the role of a strong root to support the growth of Hyundai Steel on the foundation of strong competitiveness in the future,” Park added.

According to Park, Hyundai Steel is expected to make a huge contribution to the development of all industries both home and abroad thanks to its differentiated products, while maximizing profitability on the foundation of experiences and knowhow. “It is important for our company to secure a stable material supply structure by dealing with iron scrap markets at home and abroad,” Park explained.

The third goal is to expand an advanced management infrastructure. “It is high time we innovate software for the purpose of efficiently running the hardware of the company,” Park said. “We need to enhance our management systems in order to promote management efficiency. The management and employees should strive to establish mutually beneficial labor-management relations. Hyundai Steel will practice sustainable management on the foundation of social contributions, ethical management and transparency.”

Hyundai Steel is building an integrated steel mill in Dangjin, South Chungcheong Province, which when finished will be able to produce eight million tons of steel annually. The company recently held a ceremony to celebrate the first blowing-in of the first blast furnace at the mill. Approximately 600 people attended the ceremony, including Hyundai-Kia Automotive Group Chairman, Chung Mong-koo, and blast furnace engineering firm Paul Wurth S.A. CEO Marc Solvi. The first blowing-in ceremony signifies the full-scale operation of a blast furnace, regarded as the “heart” of an integrated steel mill.

“Since the groundbreaking ceremony on October 27 of 2006, all employees have sweated to build the integrated steel mill with the aim of preparing a new growth engine for the Korean economy,” said Chairman Chung during the ceremony, adding, “As a result, the project was carried out without any accidents. Now three years later, we can celebrate the start of the operation of the first furnace.”

Despite the global economic slowdown, Hyundai Steel has created about 170,000 jobs by investing 5,840 billion won in the construction of this mill as well as significantly contributing to the development of the local and national economy.

“I sincerely ask all employees to put their utmost efforts into making Hyundai Steel’s integrated steel mill a world-class environment-friendly steel mill and one that boasts the world’s strongest product competitiveness,” Chairman Chung added.

A blast furnace is a type of metallurgical furnace used for smelting to produce industrial metals, generally iron. This new furnace is 110 meters tall and has a maximum diameter of 17 meters. World-class engineering was used to build the giant furnace, and it is expected to beat other furnaces in terms of quality and product competitiveness, the steel company explained. Hyundai Steel also applied cutting-edge environment-friendly technologies to the furnace in accordance with the environmental management philosophy of Chairman Chung.