Hyundai Steel, Korea’s second-largest steelmaker, has temporarily shut down its No. 2 plant in Pohang, North Gyeongsang, due to prolonged weak demand across the industry.
The suspension was attributed to low production volumes amid a severe market downturn. A company official stated that future decisions will be made in consultation with the labor union.
This marks a shift from the company’s earlier stance. In November initially planned to close the plant due to low operating rates but scaled back the decision after union opposition, opting instead to reduce operations. However, continued global demand weakness and sluggish domestic conditions have now prompted a full suspension.
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.
The company has faced a challenging business climate this year, including U.S. steel tariffs and fierce price competition from Chinese steel imports. The company is also reportedly seeking to sell its heavy machinery division at Pohang Plant No. 1 to streamline underperforming units.