This file photo from Nov. 15, 2024, shows a Hyundai Steel production facility in Pohang, some 270 kilometers southeast of Seoul. (Image courtesy of Yonhap)
SEOUL, June 11 (Korea Bizwire) — Hyundai Steel Co., South Korea’s second-largest steel manufacturer, has temporarily shut down its No. 2 plant in the southeastern city of Pohang due to a prolonged industry-wide slump, the company said Wednesday.
The suspension took effect Saturday due to a lack of production volume amid severe industry-wide demand contraction. A company official said future decisions will be made through discussions with the labor union.
The latest move marks a reversal from Hyundai Steel’s earlier decision. In November last year, the company, a unit of Hyundai Motor Group, announced a plan to close the plant due to low operations but later reversed it following strong opposition from the union. The company decided to scale down operations instead.
However, continued weakness in global demand, compounded by sluggish domestic market conditions, has led to the latest decision for a full suspension of operations at the facility.
The company has been dealing with a tough business environment this year, including steel tariffs imposed by Washington under U.S. President Donald Trump. Earlier this year, Hyundai Steel began offering voluntary retirement packages to workers at its Pohang complex as part of restructuring efforts.
Hyundai Steel is also reportedly pushing to sell off its heavy machinery division at Pohang plant No. 1 to streamline underperforming business units.
(Yonhap)
