Wednesday, May 1st, 2013
SEOUL, KOREA - Hyundai Motor Group will invest 1.12 trillion won to build two plants as part of its bid to improve competitiveness in state-of-the-art automotive materials.
To be located in Dangjin, South Chungcheong Province, the two new plants will produce specialty steel and high-quality iron powder, the two key materials used in vehicle engines and transmissions.
The 1-trillion-won specialty steel plant will be built within the compound of Hyundai Steel's Dangjin Works with an annual capacity of 1 million tons. Currently Hyundai Motor Group gets most specialty steel supplies from SeAH Besteel and other overseas steel makers.
In addition, the company will establish an iron powder plant with an annual capacity of 25,000 tons. Up until now, it has relied for all its iron powder needs on Hoganas AB of Sweden and JFE of Japan. The 120-billion-won factory will be up and running by 2014. With the construction of the two plants, the company expects to create added value of 6.1 trillion won with 22,200 new jobs.