Hyundai Steel, the leading company in rebar production in South Korea, will halt operations at its rebar plant in Incheon for one month starting in April. This is a result of deteriorating rebar market conditions due to a slowdown in the construction industry.
On the 27th, Hyundai Steel noted, 'For the first time in its history, the rebar plant at the Incheon factory, which produces about 1.5 million tons of rebar annually, will be fully shut down for a month starting April 1.' Hyundai Steel is aiming to stabilize the long product market and improve its accumulated losses by pausing factory operations. Long products are basic steel materials used in construction, machinery, automotive, shipbuilding, and the energy and plant industries.
A Hyundai Steel official said, 'Market conditions for rebar have worsened since about 2-3 years ago when the construction market declined,' adding, 'It is true that halting operations will incur losses, but currently, the market is not good, and rebar is not selling. A decision on whether to restart operations in a month has not yet been made.'
Hyundai Steel can annually produce 1.5 million tons of rebar and 2 million tons of shape steel at its Incheon factory. Experiencing poor business conditions due to deteriorating construction market and low-priced imported steel products, Hyundai Steel is also facing adverse effects from U.S. tariffs and labor union conflicts. Last year's revenue was 23.2261 trillion won, a 10% decrease compared to the previous year. Operating profit dropped by 60% to 314.4 billion won, marking a decline for three consecutive years since 2021.
On the 26th, it announced that, for the first time in its history, it will implement a voluntary retirement program for all job categories.