Hyundai Steel Eyes 3d Blast Furnace in Dangjin

Hyundai Steel unveiled on Friday the vision to build third blast furnace at Dangjin area expanding the annual output to 12 million tonnes in future. The firm tries to expand the integrated steel plant with maximum 8 million tonnes of raw steel output capacity after the completion of the building work, which started on Friday, in 2011. Hyundai Steel said it has no concrete plant for the timeframe and downstream operations for the expansion. The firm develops the site to supply high valued automotive steel and shipbuilding plat for the group’s Hyundai Motor and Hyundai Heavy Industries.Hyundai Steel started the building works for the integrated steel plant on Friday after Chungcheongnam-do, which is autonomy covering Danjing, approved the plan. The firm starts operation of no.1 blast furnace in 2010 and the no.2 furnace in 2011 at the integrated steel plant with 2 blast furnaces with annual 3.5 million tonnes of output capacity each. The firm said the plant, which is designed to produce 7 million tonnes of raw steel, could produce maximum 8 million tonnes. The firm builds new hot strip mill with annual 3.5 million tonnes of output capacity and new plate mill with 1.5 million tonnes of capacity. The firm produces 5.5 million tonnes of hot rolled coil including from existing hot strip mill with 2 million tonnes of capacity at B area of Dangjin plant and 1.5 million tonnes of plate at the integrated steel plant. The firm expands the B area’s hot strip mill capacity to 3 million tonnes in 2007. The integrated steel plant can produce maximum 8 million tonnes of steel products in 2011. The firm tries to build no.3 blast furnace after the optimizing operations of no.1 and no.2 furnaces. The firm said it didn’t decide when it builds additional furnace, what downstream facilities it builds and what item it produces. The firm is expected to polish the idea when the planned land for integrated steel plant has no additional space for other downstream facilities. The firm estimates the plan takes 5.23 trillion won for the integrated steel plant with annual 7 million tonnes of capacity and could take total 7.5 billion won including expansion for 12 million tonnes. The firm said it will become world 6th largest steel maker with 22 million tonnes of raw steel output capacity after the expansion to 12 million tonnes at the integrated steel operation. Hyundai Steel, Hyundai Hysco and Hyundai Motor will launch joint research and development center in February to make high grade steel products. Hyundai Steel signed memorandum of understanding with CVRD of Brazil, BHP Billiton of Australia, Rio Tinto of UK and Elk Valley Coal of Canada to purchase maximum 15 million tonnes per year of iron ore and 6 million tonnes of coal from 2010. Hyundai Steel tries to build most environmental friendly steel plant in the world including the world first closed roof dome yard for raw materials.