Hyundai Steel Halts Half of Incheon Rebar Facilities... Accelerates 'Production Restructuring' Amid Plunging Demand

Discussions Underway to Close Incheon Small Rolling Mill
Annual Output of 800,000 to 900,000 Tons... 90-Ton Electric Arc Furnace Also Halted
From Pohang to Incheon: Steps Toward Unified Rebar Production

Hyundai Steel has decided to shut down part of its rebar production facilities at its Incheon plant and cut output by half in response to declining demand for rebar. Following restructuring measures in Pohang, the move to restructure rebar production in Incheon is seen as part of a broader effort to overhaul the overall production structure of its rebar business.

On January 20, Hyundai Steel held a labor-management council meeting at its Incheon plant and announced on January 21 that it is discussing plans to close the 90-ton electric arc furnace steelmaking and small rolling mill, which mainly produce small-diameter rebar. These facilities have already been idle since December 15 of last year due to maintenance work.

Hyundai Steel Incheon Plant, Dong-gu, Incheon. Yonhap News Agency

The annual production capacity of the small rolling mill at the Incheon plant is about 800,000 to 900,000 tons, accounting for roughly half of the plant's total rebar production capacity of approximately 1.6 million tons. If the closure of these facilities is finalized, rebar output at the Incheon plant will effectively be reduced by half.

This measure follows the production line adjustment at Pohang Plant 1, which was decided on January 19. Hyundai Steel has decided to convert the rebar and special steel bar production line-one of two lines at Pohang Plant 1-into a dedicated rebar facility. The restructuring at the Incheon plant is also being pursued as an extension of the company's "production unification" strategy, which aims to streamline rebar production by location.

Hyundai Steel explained that there will be no forced layoffs as a result of the facility closures. The company plans to maintain employment for surplus personnel and respond by reassigning workers through negotiations with the labor union.

The chronic oversupply structure in the rebar industry is also cited as a background for this decision. According to industry sources, domestic rebar consumption last year was about 7 million tons, while the annual production capacity of domestic rebar manufacturers reached approximately 12.3 million tons. With the recovery in demand delayed and oversupply becoming structural, facility reductions and production adjustments have become unavoidable.