On July 25, Hyundai Steel announced that its consolidated sales for the second quarter of this year were USD 4.36 billion, while operating profit was USD 70.73 million and net profit was USD 1.01 million for the same period.
Second-quarter sales were up by USD 67.56 million compared to the previous quarter due to higher sales volume. While the steel market remained sluggish, operating profit rose by USD 30.46 million due to falling raw materials prices and improved performance of subsidiaries.
Despite the challenging business environment, Hyundai Steel plans to improve profitability by increasing sales in the global market and strengthening business competitiveness through new investments in the high-growth Indian market. To achieve this, the company intends to leverage its technological competitiveness in automotive materials, an effort which will include developing carbon-reducing automotive steel plates and new steel grades for electric vehicles to expand its global customer marketing. The goal is to increase the proportion of global automotive steel sales to 21%, up by 3%p compared to the previous year.
In addition, to ensure a stable supply of automotive materials to the Hyundai Motor India (HMI) Pune plant, which is scheduled to start operation next year, and to expand sales to global OEMs and appliance parts manufacturers in India, Hyundai Steel is planning to build a new Steel Service Center (SSC) in Pune, India. The goal is to bring the new SSC to commercial production by the third quarter of next year.
The company will also actively work to create new demand through the development of bar steel technologies, and through the mass production of high-performance, high-profit new products for automobiles.
Hyundai Steel is also dedicated to creating new demand by developing seismic-resistant and fire-resistant H-beams that shorten building fireproofing processes, while expanding product specifications. In addition, to address the growing modular construction market, the steelmaker is collaborating with clients to jointly develop new structural steel solutions and modular fireproofing methods specifically tailored for high-rise buildings.
In addition, Hyundai Steel plans to expand its market share by developing high-performance new products for automobiles. This includes becoming the first in Korea to mass produce hot rolled steel with a tensile strength of 1 GPa, which will be applied to the rear trailing arms of electric vehicles, enhancing their weight reduction and collision safety.
