Hyundai Steel invests $116 million to strengthen supply of high-quality scrap

South Korean steelmaker Hyundai Steel has announced an investment program worth 170 billion won ($116 million) through 2032 to secure high-quality scrap and develop low-carbon raw material production capabilities, according to The Asia Business Daily.

With this investment, the company plans to introduce new equipment for shredding steel scrap. Sorting lines will be built at plants in Pohang and Dangjin.

Hyundai Steel initially intends to invest 22 billion won to create advanced raw material processing facilities in the south of Gyeonggi Province, including crushers and crushing, sorting, and refining systems. Construction will begin in early 2027, with full launch scheduled for 2028.

At the same time, Hyundai Steel is developing technologies to convert conventional scrap into high-quality scrap. Pilot plants for sorting and refining scrap are already in operation at the Pohang plant. In 2026, the company plans to expand its research by applying to participate in a national research project.

In November, the South Korean National Assembly passed the K-Steel Act to support the country’s steel producers. Among other things, it provides for practical measures to strengthen scrap supply chains. Korean steelmakers generally welcomed the passage of this bill.