Saturday, September 09, 2006

Hyundai Steel Moves Forward

The Hyundai-Kia Auto Group is a highly integrated car maker--much more than many westerners realize. In addition to Hyundai and Kia Motors, the Group operates over 25 related divisions that range from logistics (GLOVIS)) to parts manufacturing and distribution (MOBIS). Long a goal of the Chairman, Chung Mong Koo, has been steel production. That will soon be a reality.

Hyundai Steel commences private port operation in Dangjin

DANGJIN, South Korea, Sept. 8 (Yonhap) -- Hyundai Steel Co., South Korea's second-largest steelmaker, on Friday began operation of a private port in the western coastal city of Dangjin to ship products to and from its factory nearby, the company said.

Hyundai Steel invested $66.4 million in the construction of the 280-meter-long port in the town 123 kilometers southwest of Seoul. It plans to expand the port's width to 1,240 meters by the end of 2008, the company said..

The company port in Dangjin will also be of use in the construction of Hyundai Steel's integrated steel mill. The port will be helpful in delivering construction materials.

Hyundai Steel, a subsidiary of Hyundai-Kia Motor Group, aims to build South Korea's third integrated steel mill by 2011. Currently, only POSCO, the world's No. 5 steelmaker, operates steelworks in Pohang and Gwangyang, while the rest depend on mini-mills.

Construction of the envisioned 7-million-ton mill is slated to begin next month, the company said.

Upon its completion, South Korea's largest automaking conglomerate will have secured an integral system to produce all necessary components from steel to parts to cars. It plans to be the world's seventh-largest steelmaking business group by then, according to the company.

Hyundai-Kia Motor Group also has Hyundai Hysco Co. and BNG Steel which produces steel products for cars.

Hyundai Steel currently has factories in the western port city of Incheon, the southeastern city of Pohang and China's eastern port city of Qingdao.

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