Hyundai Automotive Group plans to build an integrated steel mill handling the entire steel-making process from refining iron ore to producing industrial-use steel. POSCO’s is currently the only one in Korea.
If Hyundai Motor enters the blast furnace business, it could -- with its subsidiaries INI Steel, Hyundai Hysco and BNG Steel -- become a competitor to POSCO.
“In accordance with instructions from chairman Chung Mong-koo, we’ve drawn up a comprehensive roadmap to enter the blast furnace business,” the company announced. “We plan to officially announce the investment size and project schedule sometime next week at the earliest.”
The area around INI Steel Dangjin Mill (formally Hanbo Steel) in Dangjin, South Chungcheong Province is being suggested as a top candidate for the plant.
According to Chosun Ilbo, within the Hyundai Auto Group there were voices urging caution with such massive investment, expressing concern over Chinese overproduction. Nevertheless Chairman Chung decided to jump into the project, which he has been pushing since he had taken control of the family's auto manufacturing sector in the 1990s. One concern at Hyundai is cost control. By producing its own steel, Hyundai does not have to worry about POSCO raising steel prices.
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