Hyundai Steel's Operating Profit Drops 50% Last Year... "Impact of Construction Market Slowdown"

Hyundai Steel announced on the 30th that it recorded consolidated sales of 25.9148 trillion KRW, operating profit of 807.3 billion KRW, and net profit of 449.6 billion KRW last year. Compared to the previous year, sales decreased by 5.2%, while operating profit and net profit fell by 50.1% and 56.7%, respectively.

Hyundai Steel explained that the profit decline was due to a decrease in sales volume and product price drops of long products caused by a slowdown in the construction market, as well as the impact of electricity rate hikes.

Hyundai Steel has set its management policy for this year as becoming an "environmentally friendly steel company capable of sustainable growth." Based on a stable business foundation focused on profitability, the company plans to accelerate the execution of its carbon neutrality roadmap while concentrating its business capabilities on electrification and energy materials sectors.

This year, Hyundai Steel plans to expand sales of automotive steel sheets to emerging markets and secure long-term supply volumes to major automakers, aiming to increase the global automotive steel sheet sales ratio to 21% of total automotive steel sheet sales. Additionally, in line with the transition to renewable energy, the company will strengthen order activities related to European offshore wind power projects and increase the supply of energy-use heavy plates.

To create new demand for long products, Hyundai Steel will develop structural technologies for steel frame apartments, which have a higher application rate of shaped steel compared to reinforced concrete structures. The company also plans to actively pursue steel material orders for government-led railway industries such as the metropolitan area express railroad (GTX) and Honam high-speed railway.

To implement the carbon neutrality roadmap, Hyundai Steel will invest in pre-melting electric furnaces and proactively respond to carbon-neutral technologies for establishing a new electric furnace production system, as well as develop material technologies targeting the future mobility market.

A Hyundai Steel official stated, "Although the steel market downturn is expected to continue this year, we will create new demand for each product and strengthen profitability-focused management activities by expanding sales of high value-added products."

This content was produced with the assistance of AI translation services.