Hyundai Steel Starts New Blast Furnace in Iron Works

Hyundai Steel started operation of its new blast furnace in Dangjin area, South Korea on January 5th. The iron works’ crude steel output capacity is 4 million tonnes per year in the first phase. Mr. Chung Mong-Koo, chairman of Hyundai Motor group, said the firm constructed the world cut-edge and eco-friendly iron works with investment of 5.84 trillion won. Mr. Chung said Hyundai Motor can purchase and develop high quality steel sheet with its own iron works. Hyundai Steel will start no.2 blast furnace at the beginning of 2011 and increase the crude steel output capacity to 8 million tonnes per year.

Mr. Chung explained the iron works supplies high quality steel products to automobile or shipbuilding, and alternates Hyundai group’s steel import.

Hyundai Steel had been an electric furnace steel maker. The firm commenced construction of the integrated steel works in October 2006. No.1 blast furnace is 5,250 cubic meters to start commercial production in April 2010.

The iron works started operation of a plate mill with an initial capacity at 1.5 million tonnes per year in advance. The iron works will also start operation of a new hot rolling mill in September 2010 with an initial capacity at 3.5 million tonnes per year. The iron works’ hot rolling capacity will reach 8 million tonnes per year including an existent mill with 3-million-tonne capacity.

Hyundai Steel plans to start construction of no.3 blast furnace in 2015. Crude steel output capacity of the iron works is expected to approach 12 million tonnes per year.