South Korean steelmaker Hyundai Steel will suspend half of its rebar production at its Incheon plant, responding to declining demand due to the slowdown in the domestic construction sector, according to local media reports. With the aim to secure sustainable competitiveness in the long products business, the company will close its 90-ton electric furnace and associated small rolling mill equipment at the Incheon plant, which accounts for roughly 80,000-90,000 mt per year of rebar production capacity.
The plant’s annual rebar production capacity will be reduced from 1.55 million mt to 700,000 mt. The company plans to continue operating the 70-ton rebar facility, as it can produce a wider variety of rebar specifications than the 90-ton facility being closed.
No immediate layoffs announced
Hyundai Steel indicated it will not implement direct workforce reductions tied to the closure. Instead, workers affected by the facility suspension will be reassigned through discussions with the labor union, the company said.