 |
Photo = Yonhap news |
[Alpha Biz= Kim Jisun] SEOUL, South Korea – June 11, 2025 — Hyundai Steel (KRX: 004020) has suspended operations indefinitely at its No. 2 plant in Pohang, citing deteriorating market conditions. The company had previously scaled back operations to two shifts following labor union opposition to an initial shutdown plan last November.
According to industry sources, Hyundai Steel notified workers that the plant would enter indefinite shutdown as of June 7. While the company allowed workers to report normally on June 9–10 for internal discussions requested by the union, the suspension resumed on June 11.
The Pohang facility, along with the company’s Incheon plant, serves as a key domestic production base for long steel products, particularly H-beams. In April, Hyundai Steel temporarily halted rebar production at the Incheon plant and offered voluntary retirement packages to technical staff at the Pohang site.
A company spokesperson stated, “The decision was made based on production planning needs. Even if work is offered, a normal employment relationship cannot be sustained during the suspension. Only the agreed-upon leave compensation will be paid.”
Hyundai Steel had previously considered closing the Pohang No. 2 plant in November 2024 due to weak market conditions, but intense union opposition, including protests, led to a scaled-down, two-shift operation instead. A labor-management meeting is scheduled at the Pohang plant on June 12 to further discuss the shutdown.
In parallel, the company is seeking to exit its underperforming machinery division at Pohang Plant No. 1, which primarily manufactures excavator track components. Hyundai Steel is reportedly in negotiations with Daejoo KC Group over a potential sale.
Hyundai Steel posted a KRW 19 billion (approx. USD 14 million) operating loss in Q1 2025, following a loss in Q4 2024 — marking two consecutive quarters of negative earnings.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
