Hyundai Steel held a briefing on its management performance on Jan. 27, where it announced its consolidated operating profit stood at 2,447.5 billion won last year and sales amounted to 22,848.8 billion won.
In addition to a rise in prices of major products such as automobile steel sheets and shipbuilding steel sheets due to a strong global steel market, the steelmaker logged the biggest ever business performances thanks to efforts to boost its business competitiveness through a restructuring of low-profitability businesses such as thin steel sheets and colored steel sheets.
Despite many experts’ gloomy forecasts on the global economy in 2022, Hyundai Steel plans to maintain its high profitability by promoting efficient sales-oriented business operations in line with a business recovery of the demand industry and further sharpening profitability-oriented business competitiveness.
By product, the steelmaker plans to secure stable supplies by expanding sales to global automakers and parts makers, while attaining one million tons in global automobile steel sheet sales in 2022 through the development of new steel products and the attraction of new customers.
“Automobile production is expected to ascend seven percent year-on-year to 85 million units this year,” Hyundai Steel Vice President Park Jong-sung said.
“Dual demand is expected to occur due to a semiconductor shortage problem last year.”
As a result, sales of automobile steel sheets are expected to grow in 2022 compared to last year.
“We sold 3.78 million tons to Hyundai Motor and Kia Corp. last year, but we expect 4.2 million tons in 2022, up 11 percent from a year before,” Vice President Park said.
“In 2021, we sold 720,000 tons of steel sheets for automobiles to global carmakers, but we plan to ramp up their volume 33 percent to one million tons this year. Last year, our total auto steel sheet sales stood at 4.5 million tons, but this year, we are looking to sell 5.2 million tons, an increase of 14.8 percent from 2021.”
Hyundai Steel will build a 9% Ni steel sheet mass production system in response to a spike in demand for LNG carriers in the mid- to long-term due to the influence of air pollution regulations.
It will increase its capabilities for steel sheets not only for shipbuilding but for storage tanks on land.
If raw material prices rise further, Hyundai Steel will reflect it immediately, a Hyundai Steel official said, “An additional increase in raw material prices will be reflected again in the future,” he said.
“Shipbuilders showed poor business performances in 2021 and they will continue to face difficulties this year, but we cannot help reflecting the increase in raw material prices. We will sincerely negotiate with shipbuilders to produce good results.”
In the long product business, Hyundai Steel will improve the convenience of customers and expand new demand through the development of an e-commerce platform for construction steel products.
Its steel pipe business department will respond to offshore wind power projects by establishing a cooperative system with specialized companies from materials to steel pipe production and modularization.
In terms of strengthening business competitiveness, Hyundai Steel plans to push for the internalization of field-oriented innovation based on innovation activities throughout the company in 2022 following innovation activities in its manufacturing sector in 2020.
To this end, core tasks were selected for each business unit, allowing the CEO to directly manage innovation activities.
It plans to boost its manufacturing competitiveness by strengthening field-oriented facilities and establishing self-improvements and fostering talented professional people.
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