Posted on 28 Feb 2025
Hyundai Steel’s sales of automotive steel sheets to nonaffiliated global automakers exceeded 1 million tons last year for the first time since the completion of its Dangjin Steelworks facility in 2010. The steelmaker has set a goal of becoming a global "top three" player in the automotive steel market by increasing such sales to approximately 2 million tons.
Of the 5 million tons of automotive steel sheets the firm produced last year, Hyundai Steel sold about 20 percent to global automotive companies. The steelmaker began expanding outside of Korea in 2017, a strategic decision to reduce its dependence on Hyundai Motor and Kia while establishing itself as a global supplier.
Hyundai Steel has steadily increased its external sales ratio from 16 percent in 2021 to 17 percent in 2022 and 18 percent in 2023. Currently supplying steel to 25 global brands including General Motors, Ford and Renault, the company this year aims to sell more than 20 percent of its total production to overseas automakers.
Automotive steel sheets are the highest value-added products in the steel industry, generating stable revenue through typically long-term supply contracts. With the current stagnation in the construction industry affecting the steel market, expectations are high for automotive steel to provide stable profit. Currently, the product accounts for over 40 percent of Hyundai Steel’s sales revenue.
Hyundai Steel also plans to begin commercial production of carbon-reduced automotive steel sheets — expected to be essential in reducing automaker emissions from the production stage — next year using a process that combines electric arc furnaces and blast furnaces. The company will convert its thin hot-rolled steel plant at Dangjin Steelworks, which has been inactive since 2020, into a low-carbon automotive steel sheet factory to reduce emissions while improving profitability.
For this initiative, Hyundai Steel will apply its proprietary “Hy-Cube” carbon-neutral production system that incorporates a new electric arc furnace that combines steel scrap, direct reduced iron and molten metal produced in blast furnaces.
Meanwhile, the steelmaker has completed the development of third-generation automotive steel sheets that are 20 percent stronger than conventional steel sheets while maintaining malleability. The company plans to commence commercial production this year.
Source:Korea JoongAng Daily
