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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Hyundai Steel has announced the indefinite suspension of operations at its Pohang Plant No. 2 and revealed plans to shut down and sell the medium-section production unit at Pohang Plant No. 1 by October 2025, industry sources confirmed on June 13.
The decision has sparked tensions with the labor union. During a labor-management council meeting held on June 12, company officials cited a sharp drop in production—from 200,000 tons to 50,000 tons—as well as mounting fixed costs of KRW 5.6 billion per month and excess workforce issues at Plant No. 2 as the key reasons for the restructuring.
“The decision is not simply a downsizing measure, but a necessary step to ensure the plant’s survival and enhance competitiveness,” the company stated. It also noted that asset sales, including equipment, are already in the implementation pipeline.
Discussions on the sale of the medium-section production division reportedly began in late 2023. According to the timeline presented by Hyundai Steel, production will cease by November this year, with equipment relocation and regulatory approvals scheduled through June 2025. A three-month inventory adjustment and stabilization phase will follow, with the final sale targeted for the end of October 2025. Most employees in the affected unit are expected to be reassigned to other departments after November.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
