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Hyundai Metal’s automated tagging robotic on the firm’s plant in Dangjin, South Chungcheong Province. Courtesy of Hyundai Metal
Hyundai Metal, Korea’s second-largest steelmaker, mentioned Tuesday it’s going to reduce manufacturing by half at one in every of its three home metal reinforcement bar (rebar) vegetation as a consequence of weak demand.
The corporate plans to completely shut down one in every of two manufacturing traces at its 1.6 million-ton-a-year rebar plant in Incheon, west of Seoul, an organization spokesperson mentioned, including that the opposite two rebar vegetation will stay operational.
The choice comes as rebar demand has slumped amid a protracted downturn within the development trade and an oversupply available in the market.
Hyundai Metal mentioned the deliberate output discount is not going to end in layoffs. Staff affected by the shutdown will likely be reassigned to different manufacturing traces following consultations with the labor union, it added.
“Home rebar demand totaled about 7 million tons final yr, whereas native steelmakers’ manufacturing capability reached 12.3 million tons,” an trade official mentioned. “Restructuring seems inevitable within the metal trade amid power oversupply.”
The federal government has additionally recognized rebar as a sector affected by persistent oversupply in its metal trade development plan launched on Nov. 4, calling restructuring within the phase “inevitable.”
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