Dongkuk Steel vows to up production of color-coated steel
Dongkuk Steel Mill, Korea’s third-largest steelmaker by sales, said it aims to increase color-coated steel sales by more than 40 percent in a decade.
Chang Sae-wook, Dongkuk Steel Mill vice chairman, vowed on Monday to increase sales of the product to 2 trillion won ($1.7 billion) by 2030 from 1.4 trillion won.
If the target were to be hit, color-coated steel would account for 30 percent of the company’s sales, from the current 20 percent.
Color-coated steel is made by adding a decorative layer during the manufacturing process.
Chang, who owns 9.43 percent of Dongkuk Steel Mill, made the promise in a press event held at the company’s headquarters in central Seoul on Monday. The event was held to celebrate the 10th anniversary of Luxteel, its color-coated steel brand.
Dongkuk Steel Mill is the largest producer of color-coated steel by sales in Korea, with 35 percent of the domestic market, it said. The company is a supplier of color-coated steel to Samsung Electronics, LG Electronics, which sell colorful refrigerators, as well as Whirlpool.
Dongkuk Steel Mill has four factories in Korea. It owns 30 percent of a steel mill in Brazil.
It may open new factories or a marketing units in America, Europe, Southeast Asia or Australia.
Expanding the range of products sold online is another measure the company plans to take to reach its 2030 goal.
To become eco-friendly, Chang said Dongkuk Steel Mill will reduce the burning of fossil fuels in the process of producing color-coated steel. Chang said the company will reduce the use of liquefied natural gas by 50 percent in the process of making color-coated steel by 2030.
“As a solid first mover, we will lead over the next 10 years,” Chang added.
Dongkuk Steel Mill's product lineup also includes reinforcing bars and galvanized steel.
The company is projected to report 246 billion won in operating profit in the third quarter on an estimated 1.9 trillion won in sales, according to the market consensus.
Dongkuk Steel Mill shares rose 2.19 percent Monday to 16,350 won.
BY JIN MIN-JI [firstname.lastname@example.org]