Hyundai Steel’s Blast Furnace

Steelmaker becomes 2nd integrated steel mill in Korea with annual output of 19.5 mil. tons

Hyundai Steel Co. became Korea’s second blast-furnace steelmaker on Jan. 5 by igniting its first blast furnace at the Dangjin steel complex in South Chungcheong Province, which will have an annual production capacity of 4 million tons of crude steel.
Chairman Chung Mong-koo of the Hyundai-Kia Automotive Group said, “The quality of cars is determined by the steel plates and we have realized a long-term dream to build and operate an integrated steel mill. The blast furnace steel plant will go a long way in making a huge contribution to the national development as a new growth engine.” Chung thanked everyone who dedicated themselves to building the steel mill with sweat and passion.
During a ceremony at the steel plant where some 600 dignitaries and guests gathered, Chung said when the plant’s second blast furnace is completed and goes online in January next year, the plant will turn out 6.5 million tons of crude steel annually and 1.5 million tons of thick steel plates.
The Hyundai Motor chairman also said the operation of the new blast furnace steel plant will be an occasion for the second leap for his automotive group, as Hyundai Steel’s total annual output of steel products including those produced by its electric furnaces would reach 19.5 million tons to rank among the 10 largest steel mills in the world.
Chung said 5.84 trillion won has been invested in the construction of blast furnaces at the Dangjin plant, occupying a total land space of 7.4 million square meters ― 2.5 times larger than Yeouido, Seoul.
The outstanding feature of the plant is that it is an environmentally-friendly steel mill as Chung intended. Iron ore and coal will be transported to the plant through covered conveyers to the storage areas, which also have domed roofs and are designed with new technologies to prevent dirt from polluting the plant area.
Chung, at the groundbreaking ceremony for the blast furnaces in 2006, said both equipment and technologies to build the new steel plant will be nothing but environmentally friendly and will include pollution prevention facilities.
They expect a tremendous synergy among the group’s affiliates as the high-quality steel products produced at the Hyundai Steel plant will be used in automobiles, auto parts and other products. The steel plant affiliate already has been supplying steel plates to both Hyundai Motor and Kia Motors, including 700,000 tons last year.
Chairman Chung came to the steel plant in Dangjin five days before the dedication ceremony for the new blast furnace to check on the preparation of the ceremony and to hold a rehearsal. He even directly pointed out the facilities that are to be seen by the dignitaries following the ceremony. Anyone who met him then can tell that he was very taken up by the event, concerned with minute details until the time when the ceremony got underway. He often smiled broadly during the ceremony and as he met with many people including foreign guests, among them, CEO Mick Solby of Paul Worth Co., which was responsible for engineering side of the blast furnace construction.
Chung has been known to talk about his feelings to others. But it was different at the ceremony. He said he was so excited for the Hyundai family, led by the late senior Chung, because it has finally realized its dream to build a blast furnace steel mill.
Hyundai Steel traces its start back to Korea Heavy Industry Corp. in 1953, which was privatized in 1962 and absorbed by Hyundai Group in 1978. In 2000, the company absorbed Kang Industry and Sammi Special Steel and changed its name to Hyundai Steel Co. after becoming a member of Hyundai-Kia Automotive Group in 2001. Hyundai Steel took over Hanbo Steel in 2004, with plants in Incheon, Pohang and Dangjin. nw

Chairman Chung Mong-koo of the Hyundai-Kia Automotive Group fires the first blast furnace of Hyundai Steel Co. on Jan. 5 at the steel maker’s Dangjin Steel Works Complex in Dangjin, South Chungcheong Province.