Hyundai Steel building special plant in South Chungcheong

Hyundai Steel, Korea’s second-largest steelmaker, said yesterday that it has started construction on a special steel production factory inside its Dangjin Steel Mill in South Chungcheong.

The affiliate of Hyundai Motor Group said that it aims to finish building the factory by 2015 and plans to produce one million tons of steel in the first year. The company also operates a special steel factory in Pohang, North Gyeongsang, with an annual production of 500,000 tons.

Special steels are mainly used in automobile parts and Hyundai Steel said the new facility will meet automakers’ needs, including those of its affiliate Hyundai Motor and Kia Motors.

Hyundai Steel also said the factory will help reduce Korea’s special steel imports. According to data from the Korea Iron and Steel Association, a total of 1.95 million tons of special steel was imported last year, up 7.1 percent from a year ago.