Hyundai Steel widens domestic scrap strategy

South Korean producer Hyundai Steel is investing US$ 116 billion (EUR 99 billion) by 2032 to advance its output of low-carbon steel in the country.

The investment includes a new shredder facility and the introduction of scrap sorting lines at the Pohang and Dangjin steel mills. The steel giant will initially install advanced raw material processing facilities, including shredders and a ‘crushing-sorting-refining’ process in the Gyeonggi region.

It plans to use a specialised operator to process the scrap and, based on operational performance, gradually expand the shredder and refining lines.

2027 start

The facility in Gyeonggi region will feature high-speed hammer crushing equipment, non-ferrous and non-magnetic separation equipment, a dust collection system, and quality inspection and transport equipment. Construction is scheduled to begin in the first half of 2027, with full operation scheduled for 2028.

Because South Korea’s self-sufficiency rate for scrap steel is only 80-90%, resulting in a shortage of supply for electric arc furnaces, securing a stable supply of high-quality scrap steel has become a critical goal. Hyundai Steel also wants to process old scrap to improve its quality, thereby making up for the shortage of high-quality scrap iron.

A company statement says: ‘We are focusing our capabilities on ensuring a stable supply of high-quality scrap through partnerships. We are also establishing a waste treatment facility support programme for existing shredder partners.’

Louisiana plant

In December, the company announced a US$ 5.8 billion investment in a site for producing low-carbon steel in Louisiana, USA. The facility in Ascension is expected to deliver 2.7 million tonnes of hot- and cold-rolled and galvanised coil products.

Production is scheduled to start in 2029 with 70% of the output going to the automotive industry.