2nd Blast-Furnace Steel Mill in Korea

President Lee M.B. declares opening of new era in steel industry with dedication of Hyundai Steel plant

Hyundai Steel Co. dedicated its blast-furnace steel plant officially in a ceremony with some 2,500 people in attendance led by President Lee Myung-bak at its Dangjin steel complex in South Chungcheong Province on April 8. President Lee, in his congratulatory speech, said the entrepreneurial spirit such as the one that drove Chairman Chung and achieved the Miracle on the Han River from the ashes of Korea has truly been the root force of the Korean economy.
The president said Chairman Chung Mong-koo showed a leadership that deserves the highest praise for an unstoppable tenacity to marshal all the resources within his reach to build the steel plants when the entire world was throttled by the economic crisis and everyone was reluctant to spend money.
The president said he came to the ceremony despite the Cheonan-ham incident, truly a traumatic development in which so many naval officers and shipmates went down with their boat, with the thought that the industrial flame should continue to glow in Korea.
He said the dedication of the new Hyundai steel mill has opened a new chapter in Korea’s steelmaking industry, as it is the nation’s second blast furnace steel mill, adding that the creation of jobs is truly patriotic and an expression of love for the country. Lee said the country is at the pad where the its second economic take-off has been launched with the ignition of Hyundai Steel’s 110 meter-high blast furnace.
He said he appreciated the efforts of everyone who made a contribution to building the steel mill including Chairman Chung and his men, and especially the people of South Chungcheong Province, who gave support to the steel mill.
Chairman Chung said he expects the steel mill will create 170,000 new jobs and production value of 24 trillion won and an import replacement effect of $8 billion. He said the Hyundai steel plant will actively lead the changes in the world steel market, while making a great contribution to the national economy.
The Hyundai steel complex is considered to have executed a big stroke in the steel industry in Korea, as it is the second blast furnace steel works after POSCO’s and is very significant for the Hyundai family, as its dream that began with the late patriarch Chung Ju-yung has finally been achieved after 32 years.
Hyundai-Kia Automotive Group poured 6.23 trillion won to complete the integrated steel plant with the ultimate steel production capacity of 8 million tons from its blast furnace steel plant when another blast furnace is completed by November to join the first blast furnace already in operation.
The steel complex, together with steel produced by its electric furnace steel production facilities, will expand annual steel output to 19.5 million tons to rank 12th largest in the world. By 2015, the complex plans to add a third blast-furnace to raise annual production to 12 million tons with the investment of some 2 trillion won.
One of the most outstanding aspects of the Hyundai steel complex is that it can be called a green steel complex, as it is pollution-free, Chairman Chung said. He said he is very proud that the group has for the first time, completed its resources circulatory business structure.
The chairman said Hyundai Steel took over Hanbo Steel in an open bidding in May 2004, in which seven firms participated, and normalized its operations in a short period of time. In 2006, the company started building an integrated steel production facility to secure an international competitive edge and, today, the work was completed.
At the cost of 530 billion won in additional investment, or 8.5 percent of total construction costs, facilities were added for closed coal storage and to reduce noise and dust to make the complex one of the most environmentally friendly in the world. Some 37 km of conveyor belts are covered to keep pollutants including dust from mixing in the air and also depots for iron ore and coal are covered with domes for the first time in the world.
The Hyundai Steel Research Institute, which has been occupied with making better steel products, will now be able to focus on technologies to produce better steel plates for automobiles. Hyundai Steel will produce hot-coil steel and crude steel and Hyundai Hysco will take charge of cold-rolled steel used in automobiles, while Hyundai and Kia motors will focus on technologies for automobile production, taking up research and development by process stages. Hyundai Steel has been turning out and supplying 710,000 tons of structural steel products and support steel annually, but from this year it will produce and supply steel products for interiors including steel plates used in autos. The steelmaker is expanding its R&D activities to produce other steel products for autos.
Hyundai Steel will supply 1.2 million tons of steel plates needed by both Hyundai and Kia motors, about 40 percent of the 3.2 million tons of annual total steel plate needs. The steelmaker will be able to produce almost all of the steel products needed by its two affiliated car makers by 2012. nw

A panoramic view of Hyundai Steel Co. steel plant in Dangjin, South Chungcheong Province, which was dedicated in a ceremony on April 8

A slew of dignitaries led by President Lee Myung-bak and including Chairman Chung Sei-kyun of the opposition Democratic Party, Minister Choi Kyung-hwan of the Ministry of Knowledge Economy, Chairman S.R. Cho of the Federation of Korean Industries, and Hyundai Motor Chairman Chung Mong-koo, among others, push the buttons to ignite the operation of the steel plant’s blast-furnace during a ceremony on April 8 to officially dedicate the integrated steel plant, the second one in Korea after POSCO.