Hyundai Steel to completely shut down Pohang No. 2 plant due to steel industry downturn (South Korea)

South Korea's Hyundai Steel has decided to completely shut down its second factory in Pohang, North Gyeongsang Province, in the wake of a severe downturn in the steel industry. The factory was considered for closure in November last year, but was rejected due to opposition from the labor union.
According to industry sources, Hyundai Steel has been operating its Pohang No. 2 plant on the 7th due to a sharp decline in production volume caused by the extreme slump in steel demand.
A company official said, "We plan to proceed smoothly through discussions with the labor union regarding future progress, including the suspension of operations."
In addition to the slump in global demand, the domestic Korean economy is also sluggish, and the business environment has recently become even tougher.
In addition to the sluggish demand for steel, there is also the possibility of steel tariffs being imposed by the second term of the Trump administration. Hyundai Steel is taking steps to restructure its operations, including offering voluntary retirement to technical staff at its Pohang plant.
The company has also recently begun the process of selling the heavy machinery division at its Pohang 1st Plant, which produces track parts and finished products.
Hyundai Steel's operating profit last year was 314.4 billion won (about 33.1 billion yen), up 60.6% from the previous year.
In addition, the company posted operating losses for two consecutive quarters from the fourth quarter of last year to the first quarter of this year, indicating that its profitability is worsening.
In response to changes in the trade environment, including the U.S. tariff crisis, the company has invested a total of $5.8 billion (approximately 838.5 billion yen) in Louisiana.
The company is also moving forward with plans to build a large-scale electric furnace steelworks.