Steel Industry Slump... Hyundai Steel Fully Suspends Pohang Plant 2 Operations

Hyundai Steel has suspended operations at its Pohang Plant 2 in North Gyeongsang Province, which it had previously attempted to shut down last year due to a downturn in the steel industry but later reversed the decision.

On November 15 last year, the Korean Metal Workers' Union (Metal Union) under the Korean Confederation of Trade Unions (KCTU), the Metal Union Pohang Branch, and the KCTU Pohang Branch held a press conference in front of the main gate of Hyundai Steel Pohang Plant 1, protesting the plan to shut down Pohang Plant 2. Photo by Yonhap News

On June 11, Hyundai Steel announced that it had implemented the suspension of operations at Pohang Plant 2 as of June 7.

A Hyundai Steel representative stated, "We plan to proceed smoothly with future developments, such as the suspension of operations, through dialogue with the labor union."

Previously, in November last year, Hyundai Steel decided to close Pohang Plant 2 after a decline in plant operating rates due to poor market conditions in the steel industry and began discussions with the labor union.

At that time, the union strongly opposed the closure, leading the company to reverse its decision and instead operate the plant at reduced capacity to adjust production volume.

However, with the combination of weak global demand and a domestic economic downturn, the company ultimately decided to suspend operations entirely.

Hyundai Steel's operating profit last year was 314.4 billion won, a decrease of 60.6% compared to the previous year. The company recorded operating losses for two consecutive quarters, from the fourth quarter of last year through the first quarter of this year.

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