[Sponsored Report] Hyundai Steel makes quality its top priority

Hyundai Steel’s Dangjin Integrated Steelworks in South Chungcheong, which is equipped with cutting-edge and eco-friendly facilities. [HYUNDAI STEEL]

Hyundai Steel is focused on expanding its sales of global premium products and reinforcing its competitiveness. High-strength earthquake-proof steel, high value-added steel sheets for automobiles and automotive parts, are some of Hyundai Steel’s global premium products. Last year, Hyundai Steel sold 8.4 million tons of global premium products, and the company is aiming for nine million tons in sales this year. Hyundai Steel sold 360,000 tons of automotive steel sheets last year, and this year, the supply will be increased to 600,000 tons. Over 1.2 million tons are planned to be supplied to global automobile companies by 2020.

In 2005, Hyundai Steel developed Steel “H-section” New (SHN) seismic-resistant structural steel for the first time in Korea. SHN has surpassed advanced structural steel and is used in major buildings such as the IFC in Seoul, Kintex in Ilsan, overseas thermal power plants and an Antarctic research station, which are built in extreme conditions.

Hyundai Steel launched its seismic steel specialty brand H CORE, which aims to make Korea safe, in November 2017. H CORE is a product that can flexibly respond to the shaking of the Earth’s crust by absorbing seismic shock. It has higher energy absorbing power, impact toughness and weldability than structural steel so, when it is used in a structure, it enhances residents’ safety from external shock.

While expanding the global market for high-value added products, Hyundai Steel’s factory in Suncheon, South Jeolla, which started commercial production in March, is stabilizing its 3CGL equipment operation. It started 100 percent operation from June. The 3CGL, which cost 170 billion won ($153 million), in the Suncheon factory was built to preemptively respond to increasing domestic and overseas demand for automotive steel sheets. The 3CGL finished construction, passed test operations and started regular commercial production last March.

By constructing an optimal operating system for each production line, it became possible to build exclusive facilities for each client and each line that reflects clients’ various demands. Hyundai Steel developed a specialized, cold-rolled plate production system than can actively and flexibly response to clients’ demands.

Hyundai Steel developed its world-class quality competitiveness by forming production facilities that integrate automotive steel technology production know-how. Based on this, Hyundai Steel is working to succeed in the global market.

Hyundai Steel has been intensifying its automotive steel technology and quality competitiveness capability based on its overseas corporations’ global networks. It has 17 overseas corporations, including 14 service centers in nine countries. This year, to supply automotive steel sheets to Kia Motors as it enters the Indian market, Hyundai Steel is investing $38 million and plans to complete a new steel service center in Anantapur, India.

Automotive parts, one of the automotive material processing businesses, is where Hyundai Steel is intensifying its investment. In 2009, Hyundai Steel started research into hot stamping, that can make high-strength vehicle components, and started commercializing it. Hot stamping is a method that heats steel to 950 degrees Celsius (1,742 degrees Fahrenheit) in a mold. After molding, the steel is put into a press to cool rapidly in the mold. Through this method, light and high-tensile ultra-high strength steel is made. As the automobile industry focuses on lightweight vehicles, the hot stamping field that Hyundai Steel researched and developed is expanding.

Hyundai Steel’s automotive parts business is considered to be world class in terms of technology and price competitiveness. This is proved by exports, which are now 30 percent higher than domestic supplies. It is expected that the auto parts business will reach its peak as Hyundai Steel exports more to global carmakers. The company’s market penetration is expected to accelerate this year.

BY KIM HA-EUN [kim.haeun@joongang.co.kr]