South Korean steel producer Hyundai Steel has revealed plans to invest KRW 170 billion ($116.83 million) by 2032 to enhance its low-carbon raw material capabilities, placing particular emphasis on high-quality steel scrap processing. The initiative involves adding a new shredder facility and introducing scrap sorting lines at the company’s Pohang and Dangjin plants.
In the first stage of the project, Hyundai Steel will allocate KRW 22 billion ($15 million) to set up an advanced scrap processing facility in southern Gyeonggi. This stage includes installing shredders along with crushing, sorting and refining systems. The company aims to convert waste scrap into high-quality scrap through a specialized operator and will expand the facility with additional shredders and refining lines depending on operational results. Construction is planned for the first half of 2027, with full operations targeted for 2028.
Beyond shredded scrap production, Hyundai Steel is also working on new technologies to upgrade general scrap into higher-quality material. A pilot sorting and refining unit installed at the Pohang plant in 2024 is already operating, supported by ongoing in-house R&D. The company also plans to broaden this research by applying for a national project in 2026.
This investment aligns with Hyundai Steel’s mid- to long-term carbon-neutral strategy, which includes gradually shifting both electric arc furnace and blast furnace operations toward additional lower-carbon facilities. The company is also researching hydrogen-based technologies as part of its plan to achieve net-zero emissions by 2050.