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Hyundai Steel to invest 170 billion won in high quality ferrous scrap

Hyundai Steel has launched a large-scale investment program to support low carbon steel production and secure the supply of high quality ferrous scrap. The company will allocate a total of 170 billion won (115.6 million USD) by 2032 to build new facilities and introduce advanced scrap-processing technologies.

Hyundai Steel to invest 170 billion won in high quality ferrous scrap

As part of this program, new shredding and sorting lines will be installed at Hyundai Steel’s Pohang and Dangjin plants. This will enable more efficient processing of scrap sourced from end of life vehicles, home appliances and construction materials. The shredding facilities break scrap with high speed rotating hammers and remove impurities, producing homogeneous, high iron content scrap suitable for steelmaking.

The company is also preparing to build advanced raw material processing facilities in the city of Anseong in southern Gyeonggi Province. The new complex, which will include shredders, crushers, metal separation systems, dust collection units and conveyor lines, is expected to require an additional investment of 220 billion won. Construction is scheduled to begin in early 2027, with full scale operations targeted for 2028.

Hyundai Steel isn't limiting its efforts to facility investments; the company is also focusing on developing domestic technologies that convert general ferrous scrap into high quality scrap. R&D activities continue at pilot refining and sorting centers in Pohang, with indications that these efforts could be expanded nationwide.

Scrap used in electric arc furnace (EAF) operations generates only one quarter of the carbon emissions produced by traditional blast furnace processes. Given Korea’s shortage of high quality scrap supply, Hyundai Steel’s investment aims to fill a critical gap in the country’s low carbon steel production.

In a statement from Hyundai Steel, the company emphasized, “We continue our efforts to increase scrap processing efficiency with determination. This investment forms the backbone of our transition to a cleaner production model and opens the door to strong collaborations with other industrial stakeholders.”

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