Last month, Hyundai Steel successfully completed the initial sample inspection report (ISIR) of 63 strategic steel grades for auto parts, including engine, transmission and chassis, and has finally equipped itself with a mass production and supply system.
Despite the short period of product development and production since the completion of its factories in 2016, the company has been able to rapidly stabilize its product quality based on its more than 60 years of know-how in the area of electric furnace production, its close cooperation with Hyundai Motor Group, and its constant improvement of the production system. As a result, most of the steel grade products it currently produces, such as steel bars and wire rods, have been sufficiently improved to reach the standard quality level for the industry.
Since the ISIR, Hyundai Steel has set three strategic directions in its development of special steel products for auto materials: premium-level high performance materials, high-strength materials and optimum materials for next-generation mobility. The company is accelerating its product development, and production of some materials has already begun.
First, given the shift in the market to lightweight and high-performance cars, the company developed a high-durability steel grade for transmissions jointly with Hyundai Motor Group and launched its production in March.
In particular, a technology independently developed for this product to optimize the ratio of molten steel substances has improved the fatigue life by 30% compared to steel grades currently produced. Notably, the product was developed rapidly, with the first trial products produced at the end of last year, about one year after development began in 2018.
Hyundai Steel is developing six new steel grades specifically for transmissions. It is also in the process of developing a material that can reduce electromotion and contact fatigue by more than 30% in bearings and gear parts, and the company is looking to begin production next year.
In terms of the chassis, a total of eight new steel grades will be developed this year. Hyundai Steel has launched the development of a high-ductility spring material that can reduce costs by improving the corrosion life. It is also developing a material with improved processability and durability for the shaft.
In the area of engines, the company has developed three new steel grades, including a crankshaft with optimized alloying elements for increased processability and durability, and these are currently being applied to auto parts.
In addition to developing special steel parts, Hyundai Steel is promoting a number of different sales activities to increase sales. A CFT organization has been formed within the company to strengthen cooperation with the actual customers, while technical marketing organization (TMO) activities are performed to increase the sales of auto products.