The year 2021 was Hyundai Steel’s most lucrative yet, with the company recording total sales of USD 19 billion and operating profits of USD 2 billion by the end of the year.
The record-breaking profits can be attributed to an increase in the prices of key components—including steel plates for automobiles and heavy plates for ships—which have risen in response to positive trends in the global steel market—and Hyundai Steel’s success at increasing its competitive edge by making adjustments to low-profit businesses, such as thin, hot-rolled sheets and colored steel plates.
Despite the forecast of an economic slowdown for 2022, Hyundai Steel is poised to optimize its sales in conjunction with the recovery of high-demand industries and is expected to maintain the momentum of its superb business performance, which the company has achieved by strengthening its business competitiveness centering around increased overall profitability.
In particular, Hyundai Steel aims to increase sales to car and car part manufacturers, develop new steel products, and secure new customers—all of which are aimed towards reaching Hyundai Steel’s goal of attaining 1 million tons of steel products in sales for the global automotive industry in 2022.
Also in 2022, Hyundai Steel will continue its efforts that began last year to innovate its manufacturing division and pursue innovation company-wide under the goal of achieving “the internalization of field-oriented innovation,” which is expected to accompany improvements in performance.
Although each division will set its own core tasks and goals for innovation, the company’s CEO will directly oversee innovation activities to enhance Hyundai Steel’s manufacturing capacities. Reforms will also be made to the company’s operations and organization to keep profits a central focus of Hyundai Steel.
Last year, Hyundai Steel made great R&D achievements with the development of a super high tensile steel for automotive applications. This year, the company plans to develop a cryogenic rolled steel for the LNG market, an anti-seismic rebar of 700 MPa grade, and an anti-seismic/fire- and quake-proof H-beam. In 2022, Hyundai Steel will continue to develop new products and technologies to break technological boundaries and protect the environment to grow as a sustainable business and advance future industries.
R&D efforts will focus primarily on developing the low-carbon materials needed for a net-zero and hydrogen society, and the materials and parts needed for future mobility technology.
“Increased profits can be attributed to the enhanced competitiveness attained through price increases for key products and the restructuring of underperforming businesses,” said a Hyundai Steel spokesperson. “In 2022, Hyundai Steel will make every effort to grow under its management policy as a global steelmaker that leads the way for a sustainable and green steel industry.”