Prime Highlights:
- Hyundai Steel will invest 170 billion won by 2032to secure high-quality iron scrap and advance low-carbon raw materials.
- New shredder and sorting facilitieswill be introduced at Pohang Plant and Dangjin Steel Works to produce high-grade iron scrap.
Key Facts:
- Construction of advanced raw material facilities in Anseong Citywill start in early 2027, with full operations expected by 2028.
- Hyundai Steel is conducting research to convert general scrap into high-quality iron scrapand may expand projects at a national level.
Background:
Hyundai Steel is making a significant move to strengthen its raw material supply and sustainability efforts, announcing plans to invest 170 billion won by 2032 to secure high-grade iron scrap.
The company revealed on December 8 that the investment will focus on advancing low-carbon raw materials, including the introduction of shredder facilities, specialized equipment used to process iron scrap. New scrap sorting lines will be established at Hyundai Steel’s Pohang Plant and Dangjin Steel Works.
Shredders crush iron scrap from old cars, appliances, and construction materials with fast-spinning hammers, removing unwanted materials. This produces high-quality iron scrap with a high iron content and uniform quality.
Hyundai Steel plans an additional 220 billion won investment to set up advanced raw material processing facilities in southern Gyeonggi Province, including shredders and crushing-sorting-refining systems. The facilities in Anseong City will include fast crushers, equipment to separate metals, dust collection systems, and inspection and transport setups. Construction will start in early 2027, and full operations are planned for 2028.
In parallel, Hyundai Steel is developing technologies to convert general iron scrap into high-quality scrap. Pilot sorting and refining facilities are already running at the Pohang Plant, and more research and possible national projects are planned.
Iron scrap is a key material for electric furnace steelmaking, which produces only a quarter of the carbon emissions compared to traditional blast furnaces. As Korea currently faces a shortfall in high-quality scrap, securing shredded scrap has become essential for the stable operation of low-carbon steel production.
A Hyundai Steel spokesperson stated, “We are continually working to improve scrap processing efficiency and quality. This investment is meaningful as it lays the foundation for a carbon-neutral system while fostering strong partnerships with other companies.”