Hyundai Steel Starts Test Run of Integrated Steel Works in July

Hyundai Steel will activate major facility of integrated steel works in Dangjin, South Korea. The construction completed more than 90% for the annual 4 million tonnes of facilities including no.1 blast furnace and plate mill to be commissioned in 2010. The firm starts test of steel making shop in July, the construction of which is almost completed. The firm prepares for operation step by step and starts test for plate mill in August. The firm’s major project, which started construction in October 2006, started countdown for start of no.1 blast furnace in January 2010.

The executive vice president Jong-In Lee said the construction work was completed 94% for annual 4 million tonnes of capacity as of late June. The construction was also completed 75% for 8 million tonnes of capacity when construction already started for no.2 blast furnace. The firm starts movement test for equipments of steel making shop in July commissioning in January 2010 as no.1 blast furnace.

The firm starts such test for plate mill in August starting production in December with slab from electric furnace at A hot strip mill in Dangjin. The firm launches plate mill operation earlier than blast furnace to make sure of stable plate supply ability when the firm expects the blast furnace could take around 3 months for full capacity operation.

South Korean steel demand is still low level for private sector when automobile production is around 15% lower than a year earlier level while the demand hit bottom and the firm’s long products operation improved to 80-85% in April-June from 70% level in January-March. However, Mr. Lee said the firm will start operation of the blast furnace in January 2010 as scheduled. The firm expects the new operation is supported by the recovering demand when the demand starts to recover in late 2009.

The firm finishes the construction of no.2 blast furnace, of which inner capacity is 5,250 cubic meters as no.1 furnace, and C hot strip mill for automotive steel with 3.5 million tonnes of annual output capacity by end of 2010. The firm has full scale 8 million tonnes of capacity including existing B hot strip mill with 3 million tonnes of capacity in 2011.