Hyundai Steel seeks new growth engines

Representatives from Hyundai Steel and Advanced Remanufacturing and Technology Center (ARTC) pose after signing a non-disclosure agreement at ARTC's headquarters in Singapore, July 2. Courtesy of Hyundai Steel

Hyundai Steel said Thursday that it has made various efforts to secure future growth engines and enhance its competitiveness in the market.

The steelmaker signed a memorandum of understanding in June with Czech automotive components maker Tawesco and Italian steel service center Eusider to provide Volkswagen, Stellantis and other major carmakers with low-carbon steel plates in compliance with the European Union’s Carbon Border Adjustment Mechanism.

Amid the Korean firm’s ongoing investments at its low-carbon steel plate manufacturing facility in Dangjin, South Chungcheong Province, the Korean firm has formed this partnership in response to the growing demand for eco-friendly products of its European clients.

Hyundai Steel and its partners plan to test components made with low-carbon steel plates and carry out joint marketing campaigns to expand their presence in the market.

Last month, the steelmaking unit of Hyundai Motor Group signed a non-disclosure agreement with Singapore’s Advanced Remanufacturing and Technology Center (ARTC) to develop artificial intelligence for smart factories.

ARTC has already teamed up with with Hyundai Motor Group Innovation Center Singapore.

Hyundai Steel expects its recent partnership with ARTC to lead to innovation in steelmaking.

Additionally, the steelmaker has paid attention to the production of steel products used for substructures of offshore wind farms, as the company views the offshore wind power industry as lucrative.

According to the company, steel products used for substructures of offshore wind farms need to resist heavy weight, strong vibrations, low temperatures and corrosion caused by salt water.

Based on its track record of supplying steel pipes to Jeju Hanlim and Taiwan’s TPC offshore wind projects, Hyundai Steel seeks to dominate the market for steel products used in the substructures of offshore wind farms.

“The global demand for offshore wind plants will grow further,” a Hyundai Steel official said.

“We have entered the market, considering its growth potential.”