In a disclosure on April 30, Hyundai Steel announced that it has turned a profit for the first quarter of this year, reporting consolidated sales of USD 4.36 billion, an operating profit of USD 40.9 million, and a net profit of USD 23.6 million.
High-quality hot rolled steel produced by Hyundai Steel
In the first quarter of 2024, while sales revenue decreased by USD 114.7 million compared to the previous quarter, operating profit increased by USD 208.9 million. The improvement in profitability was achieved through the application of sales price adjustments to offset cost increases, as well as cost-saving measures.
In the midst of a continuing slowdown in the steel market, Hyundai Steel is aiming to actively respond to new demand markets to ensure stable profitability while concentrating on the development of high value-added steel products. To this end, the company plans to open a Steel Service Center (SSC) for electric vehicles in Georgia, USA in the third quarter of 2024. This initiative aims to address the demand for steel plates driven by the global expansion of electric vehicle sales, and secure a local sales base.
In addition, to meet the increased demand for high-value-added plates driven by the growth of the energy market, Hyundai Steel plans to finalize its investments in expanding the heat treatment furnace at Dangjin’s Steel Plate Factory 1 by the end of this year, and to expand product sales.
Meanwhile, the company is also accelerating its efforts to develop high-value-added steel, in response to the paradigm shift in the automotive industry and the growth of the offshore wind power market. To address automotive lightweighting, Hyundai Steel is currently establishing a production system for third-generation steel plates that are lighter and stronger than conventional automotive sheets. In addition, the company is continuing to develop materials for electric vehicle reducers, in line with the transition to automotive electrification.
Hyundai Steel also plans to develop large-scale plates and specialized materials to meet growing demand from offshore wind power generation facilities. The steelmaker plans to expand its market presence by supplying steel to both Korean and international offshore wind projects, including the Yeonggwang-Nagwol offshore wind power complex in Korea and an offshore wind power project in France.