Hyundai Steel, South Korea’s second-largest steel producer, plans to indefinitely suspend operations at its second plant in Pohang due to a construction slowdown and fierce price competition from Chinese steel imports. After attempts to reduce operations and conduct maintenance, the company found continued production at the plant unsustainable, according to the local media reports.
Hyundai Steel has reportedly informed employees of the potential closure, though a final decision is pending. Pohang Plant 2, responsible for both steelmaking and rolling, has an annual capacity of approximately 700,000 tons, about half that of Plant 1. The company also operates major facilities in Dangjin, Incheon, and Suncheon.
South Korean steelmakers face mounting pressure amid a sluggish economy and a surge in low-cost Chinese imports. In July, Hyundai Steel filed an anti-dumping complaint with the Korea Trade Commission against low-priced Chinese steel plates and is considering an additional complaint targeting HR plates.
