[Alpha Biz= Kim Jisun] Hyundai Steel will shut down part of its rebar production facilities at the Incheon plant and reassign employees rather than carry out layoffs, according to industry sources on March 2.

The closure involves the plant’s 90-ton electric arc furnace steelmaking line and its small rolling mill line. The affected facilities have an annual production capacity of around 800,000 tons—about half of the Incheon plant’s total rebar capacity of approximately 1.6 million tons. The company finalized the shutdown plan in January, citing a prolonged industry downturn.

Employee reassignments will be divided between internal transfers within the Incheon plant and inter-site transfers. Internal transfers will be conducted based on job category, position, length of service, and age, with one additional reassignment opportunity offered later this year if vacancies arise.

Inter-site transfers will primarily involve relocation to the Dangjin Steelworks, with the company stating it will seek to accommodate all employees who request relocation.

Hyundai Steel has also proposed support measures to the labor union, including temporary preservation of position allowances, special leave, and housing assistance. Employees reassigned within the plant will receive seven days of leave, while those transferred to other sites will be granted up to 10 days. Relocation support includes moving expenses of up to KRW 3 million, dormitory housing or a KRW 6 million settlement grant, and loan support of up to KRW 100 million.

The Incheon plant closure is widely viewed as part of Hyundai Steel’s broader effort to restructure its rebar production. Previously, the company announced plans to convert rebar and specialty steel bar production lines at its Pohang No.1 plant into rebar-only facilities and relocate specialty steel bar production to Dangjin. It has also pursued asset sales and restructuring at other operations.

The move comes amid a sustained downturn in the domestic rebar market. Total rebar demand in South Korea fell from about 11 million tons in 2021 to roughly 7.8 million tons in 2024, with demand expected to hover around 7 million tons last year.

 

 

 

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