Hyundai Steel, TKS Team Up for Steelworks
By Jane Han
Staff Reporter
Hyundai Steel teamed up with Germany's ThyssenKrupp Steel (TKS) Thursday for technological backing to expedite the construction of its integrated steel mill complex, an ambitious plan to bump the country's No. 2 player to become one of the world's top 10 steel groups.
The arm of Hyundai Motor Group broke ground in the southwestern coastal city of Dangjin in late October last year to build the nation's third-largest integrated steel mill, but it has been seeking a partnership with TKS since 2005 to facilitate technology transfers.
Through the agreement signed by Hyundai Steel CEO Park Seung-ha and TKS Chairman Karl-Ulrich Kohler, the European industrial conglomerate will pass on its coking, steel making and overall operational technology.
Hyundai Steel plans to complete the facility with an annual output capacity of eight million tons by 2011, with an additional upgrade expanding the capacity to 12 million tons by 2015.
The five trillion won steelworks project has been Hyundai Motor Chairman Chung Mong-koo's goal, as the facility would secure a steady supply of steel for the nation's two largest automakers, Hyundai Motor and Kia Motors.
Aside from the engineering cooperation, 250 of Hyundai Steel employees will be sent to TKS' German headquarters for operational training from next March to May 2010.
In return, some 40 TKS engineers will be dispatched to Dangjin from July 2009 to 2011 to provide on-site advice.
``TKS has extensive knowledge in operating a blast furnace, which will play a significant role in stabilizing Hyundai Steel's preliminary steps in the mega project,'' said a company spokesman.
Chung promised even further partnerships in the future during the signing ceremony, saying, ``We hope the two companies can actively exchange knowledge in more areas, including thermo mechanically processed (TMCP) steel.''
The TKS chief welcomed the offer and said the company will seek ways to collaborate in the auto business.
On the same day, a separate memorandum of understanding (MOU) was signed among Hyundai Steel, Hyundai Motor and TKS to materialize these plans and ensure that Hyundai will use more TKS products in its factories in Europe and the Americas.
ThyssenKrupp, which produced about 17 million tons of steel last year, is well known for its premium quality auto steel sheets used by Volkswagen, DaimlerChrysler, Mercedes Benz and BMW.