Hyundai Steel's
Blast-Furnace

2nd blast-furnace steel mill in the country to begin operation in 2010

Hyundai Steel broke ground for the construction of a blast -furnace steel mill capable of producing 7 million tons of crude steel annually in a ceremony held at the site in Dangjin, South Chungcheong Province on October 27th with hundreds of dignitaries and government officials led by President Roh Moo-hyun and Chairman Chung Mong-koo of the steel mill in attendance.
It will be the second blast- furnace steel mill in the country when completed after POSCO and the world's 10th largest.
President Roh, in his congratulatory speech, said the new steel plant will solve the supply problem of steel products when it is completed and will lead to the development of new technologies through effective cooperation with related industries such as automobile and machinery. It will also boost the quality of Korean steel products and services in competition and cooperation with the early comers in the industry. With the addition of Hyundai Steel's new plant,
Korea will rank 5th in the world in terms of steel output amounting to 50 million tons per year, he said. The history of the steel industry is the country's economic development history itself. It started with only two hands without capital and technology. The industry now takes up 2.5 percent of Korea's GDP and 5.1 percent of total exports, the President said. The industry backed up the manufacturing industry with inexpensive and good quality steel. Industries like shipbuilding, auto, electronics, and machinery owe to the steel industry their global competitiveness. But the industry faces challenges ahead, he warned. China has emerged as a strong steel country and steel plants around the world are getting bigger in scale through mergers and acquisitions. He called on the steel industry to diversify and make its products high-quality to combat the challenges and overcome them, pledging government support for the development of new material and R&D activities.
Chairman Chung said in his speech that the new steel plant will not only help boost the competitive edge of the Korean steel industry,
but also those of other related industries like automobiles, electronics, and shipbuilding, among others.
Company officials said the project is a dream-come-true for Chairman Chung and the Hyundai Group as the group's late founder Chung Ju-yung always talked about building a blast-furnace steel plant in his life time and once attempted to build one only to be denied by the government and now his dream has come true with the launching of the construction of the steel plant targeted to be completed and go on stream early in 2010 when the first stage of the construction is finished turning out 3.5 million tons of crude steel. The second phase of the project will expand the annual steel production capacity to 7 million tons by adding another blast-furnace capable of turning out 3.5 million tons of crude steel will begin in 2011. Hyundai Steel will invest a total of 5.24 trillion won to build the new steel plant.
The new steel plant is being built at a 3,173,000 square meters site near former Hanbo Steel plant that Hyundai Steel acquired in 2004.
Hyundai Steel plans to complete the first-phase work by 2009 and the new plant will turn out 3.5 million tons of crude steel in early 2010 and from 2011, the company plans to launch the second- phase of construction to add 3.5 million tons of steel production capacity to bring total capacity to 7 million tons annually. The company will become the 10th largest blast-furnace steel mill in the world up from 31st as an electric-furnace steel plant.
The new steel plant would save some 3.5 trillion won in import cost of steel products creating 78,000 jobs directly or indirectly when it begins operation and 93,000 jobs during the construction period. It was expected to produce 13 trillion won in employment effect during the construction period and production effect of 11 trillion won annually after it goes on stream.
To prepare the Dangjin area as a mecca of the steel industry in the country, the government has already built the Dangjin harbor, the Pyeongtaik harbor, and the West coast Expressway as part of its plan for the development of social overhead capital facilities for the area which already has become a center of industries that need steel to make products.
Hyundai Steel has already concluded MOUs with major suppliers of iron ores such as BHP Billiton of Australia, Rio Tinto and CVRD of Brazil, and EVCC of Canada. nw

A: A view of the opening ceremony of the product pier for Hyundai Steel.
B: President Roh Moo-hyun, 3rd R, listens to Chairman Chung Mong-koo as he explains the model of Hyundai Steel complex.
C: President Roh, 2nd R, MOCIE Minister Chung Sye-kyun, 1st R, and Hyundai-Kia Automotive Chairman Chung Mong-koo, 3rd R, applaud at the ground-breaking ceremony of Hyundai Steel's blast-furnace steel plant in Dangjin, South Chungcheong Province Oct. 27.
D: Chairman Chung Mong-koo.