South Korean steelmaker Hyundai Steel will halt half of its rebar production at its Incheon plant in response to lower demand due to a slowdown in the domestic construction sector, local media reported. To ensure sustainable competitiveness in the long products segment, the company will close its 90-ton electric furnace and associated small rolling mill equipment at the Incheon plant, which produces approximately 80,000-90,000 tons of rebar per year.
The annual capacity of the rebar plant will be reduced from 1.55 million tons to 700 thousand tons. The company plans to continue operation 70-ton rebar plant as it can produce a wider range of rebar specifications than the 90-ton facility that is being closed.
No immediate layoffs have been announced
Hyundai Steel has indicated it will not make direct workforce reductions related to the closure. Instead, workers affected by the site shutdown will be reassigned through discussion with the union, the company said.
