South Korean steel product manufacturer Dongkuk Industries is expanding its production capacity, thanks to brisk demand from the automotive industry.
A six-high rolling mill will be delivered for installation in October this year. The new six-high mill will cover 0.4-8 mm thickness and 200-650 mm width and will have an annual production capacity of 100,000 mt.
The total company budget for the mill project is KRW 100 billion. The current galvanizing mill will be removed and the six-high mill will be built in its place. The yet-to-be-removed galvanizing mill will be sold, though nothing has been fixed yet.
The expansion is aimed at meeting growing demand. As the South Korean automotive industry continues to boom, the automotive parts industry will see great demand for high carbon steel strips.
Dongkuk Industries is in full operation and expects an upcoming short supply in the Q4 and later. It expects more than 15 percent growth in shipments next year at home and abroad.