Hyundai Steel, South Korea’s second-largest steelmaker, is considering selling its caterpillar track division at the Pohang 1 plant, 273 kilometers southeast of Seoul, local media reported Monday. The company is in talks with Daejoo.KC, a firm active in steel structures and auto components, a Hyundai spokesperson confirmed.
The move comes after a 65pct plunge in caterpillar track sales last year compared to 2021, driven by intensified competition and an oversupply of low-priced Chinese products. The tracks are used in heavy machinery such as excavators and bulldozers.
Hyundai Steel has been grappling with weakening demand and steep U.S. tariffs. In April, it temporarily closed one of its three domestic rebar plants in Incheon for a month. The company also declared emergency management in March, citing mounting difficulties, including ongoing labor disputes and tariffs imposed during the Trump administration.
Earlier this year, a prolonged strike led to the suspension of its cold-rolled steel operations in Dangjin from February 24 to March 31.
To offset the impact of U.S. tariffs and diversify operations, Hyundai Steel plans to invest USD 5.8 bln in a new electric arc furnace-based steel mill in Louisiana, aiming to start production in 2029. Currently, the company runs a blast furnace-based integrated plant in Dangjin and electric arc furnace facilities in Incheon and Pohang.