Opposite Directions
POSCO and Hyundai Steel are adopting different strategies this year, as the Hyundai Motor Group is going to be supplied with more automotive steel sheets from the latter. Hyundai Steel is planning to expand its domestic production facilities, while POSCO is turning its eyes toward overseas markets.
With the Hyundai Motor Group aiming to sell 8.2 million cars this year, which is 1.5 percent more than it did in 2014, Hyundai Steel is building 2CGL for producing 500,000 tons of galvanized steel sheets a year in its cold rolling plant in Dangjin City. The new facilities will be put into test operation in October this year before starting production in February 2016.
POSCO, meanwhile, is trying to increase its automotive steel sheets abroad. The company sold 8.17 million tons of the product last year, and the domestic sales decreased 12 percent from a year ago to 2.375 million tons. This can be attributed to the decreased supply of Hyundai Motor Company and Kia Motors. Still, POSCO’s automotive steel sheet exports increased 17 percent to 5.792 million tons between 2013 and 2014. Exports have increased since 2012, and the ratio of its exports to its gross sales is over 60 percent now.
These days, POSCO is increasing its supply to global leading carmakers such as GM, Ford, Toyota and Nissan. Recently, it signed a contract with Volkswagen to supply its steel sheets. “Our automotive steel sheet production capacity will go up to 2.2 million tons a year once the new facilities in Thailand are completed in June this year to follow those in Mexico, China, and India,” the steelmaker explained.