Posted on 20 Nov 2024
Posco will shut down its first steel wire rod plant in Ulsan after 45 years of operation.
The company decided to shut the plant down due to the excessive global steel supply on top of the “aggressive penetration of cheap foreign-made steel” and the factory’s aging facilities.
The Wire Rod Plant 1, operated by Pohang Steelworks, is the company’s first steel wire rod factory that started production in February 1979. Throughout its 45-year history, the factory produced a total of 28 million tons of steel wires.
“The steel wire produced in the factory turned into material for screws and as tire reinforcement elements like tire codes and bead wires, close to the everyday lives of the people,” the company said in a press release Tuesday.
The company’s remaining three wire rod plants will be responsible for future production of tire codes and other welding rods, and all employees from the first plant will be reassigned, the company said.
“Demand for cheaper [steel rods] in the domestic market has already been met by low-priced foreign exports and the effect [of the shutdown] will be limited,” Posco said.
“Posco Works will reduce focus on a price-centric competitive market and instead focus on high-value steel products such as cold heading quality steel, spring steel and bearing steel.”
Posco said it currently has no plans to build new plant on the existing site.
Source:Korea JoongAng Daily
