South Korean steelmaker Hyundai Steel has entered emergency management due to several factors affecting its operations, according to media reports.
The reasons behind the decision are the rising share of cheaper imports from China and Japan in the domestic market, the US decision to impose 25 percent tariffs on steel imports from all countries, sluggish domestic demand, the recent strike at the company’s Dangjin plant, and a decline in the company’s profits.
The emergency status includes a 20 percent cut in all executive salaries, implementation of a voluntary redundancy program for all employees and cost-savings to an extreme extent.
As SteelOrbis reported previously, in mid-January this year Hyundai Steel suspended rebar production at its Incheon and Pohang plants until the end of that month, due to weak demand, in order to stop its losses.
In the meantime, the company’s recently resumed negotiations with the labor union representing its workers at its Dangjin plant has failed. As a result, the union has announced the partial resumption of the strike until March 20.