In its January 30 disclosure, Hyundai Steel announced that it recorded a consolidated revenue of USD 19.46 billion in 2023, with an operating profit of USD 606.3 million, and a net profit of USD 337.7 million.
Hyundai Steel’s consolidated revenue for 2023 was down by 5.2% compared to the previous year, while operating profit and net profit decreased by 50.1% and 56.7% respectively. This was due to a reduction in the sales volume of reinforcing steel which was in turn caused by a slowdown in the construction market last year. A decline in product prices and a rise in electricity rates were also contributing factors.
To overcome such challenges in the business environment, Hyundai Steel set its management policy for 2024 as becoming a “sustainable growth-oriented eco-friendly steelmaker.” The company aims to accelerate the implementation of a carbon neutrality roadmap based on a stable business foundation centered on profitability, while focusing on enhancing business capabilities in the electrification and energy materials sectors.
This year, Hyundai Steel is committed to bolstering sales of automotive steel plates in emerging markets and securing long-term supply volumes from major carmakers. The objective is to increase the proportion of global automotive steel plate sales to 21% of total automative steel plate sales. In addition, the company plans to ramp up its supply of energy steel plates, by securing orders for offshore wind PJTs in Europe, which are growing in popularity as part of a growing trend that promotes renewable energy.
Furthermore, Hyundai Steel plans to develop structural technology for steel-framed apartments, which involve a higher proportion of steel application compared to reinforced concrete structures, with the aim of creating new demand for rebar steel products. Additionally, it intends to actively pursue orders for steel materials in government-led railway projects such as the Great Train eXpress (GTX) for the Seoul area and the Honam High-Speed Railway.
In addition, to implement its carbon neutrality roadmap, Hyundai Steel plans to invest in “pre-melting electric furnaces”1) and proactively respond to the development of carbon-neutral technologies to establish a “new electric furnace production system”2) and material technology targeting the future mobility market.
1) A facility that produces low-carbon steel products by mixing low-carbon molten iron into the blast furnace process using electric furnaces
2) A low-carbon steel product manufacturing system based on Hyundai Steel’s electric furnace technology