Incheon: Hyundai Steel Co., South Korea's second-largest steelmaker by sales, announced plans to temporarily shut down one of its three domestic steel reinforcement bar (rebar) plants due to reduced demand. A spokesperson for the company confirmed that the rebar plant located in Incheon will cease operations throughout April, while the other two rebar facilities will continue functioning.
According to Yonhap News Agency, this closure is not for regular maintenance but rather a strategic move to address deteriorating market conditions. The spokesperson explained that the decision, although resulting in immediate financial losses, aims to stabilize the rebar market. Hyundai Steel's Incheon plant has an annual production capacity of approximately 1.5 million tons of rebar and 2 million tons of steel sections.
The temporary suspension is intended to alleviate the market's oversupply issues, which have led to declining prices amidst increasing competition. In response to various challenges, Hyundai Steel entered an emergency management mode on March 14, prompted by the imposition of steel tariffs by the Trump administration and ongoing conflicts with unionized workers.
Executives at the company have taken a 20 percent pay cut since March 13 as part of cost-cutting measures. Additionally, Hyundai Steel is considering a voluntary retirement program for its employees. The company has been engaged in prolonged wage negotiations with its union since September, leading to multiple strikes and production disruptions.
Previously, on February 24, Hyundai Steel had suspended its cold-rolled steel facility in Dangjin due to a protracted strike. This facility, known as the pickling line/tandem cold mill (PL/TCM), is a critical component of the company's integrated steel mill operations in Dangjin.