‘Business should be run in a nature-friendly way!’

By Park Byung-uk, vice president/editorial writer (industry)

This is the first installment in a series of articles on leading business companies in Korea and around the world covered by the writer, a specialist in the business world in Korea and outside world. Park was formerly the director of the Business Bureau of The Korea Times, a leading English daily in Korea. He joined The Korea Post, established in 1985 and now operating 5 media outlets, 3 in English and 2 in the Korean language.--Ed.

Chief Executive Officer Yoo-cheol Woo of the world’s steel giant, Hyundai Steel, says, “Businesses should be run all in a nature-friendly way!” CEO Woo is obviously very keen to the protection of nature and environment.

This motto is very, very important in the world today as various ill and adverse impacts from environmental pollution plague the world especially reduction of the greenhouse gas.

This year, Korea and the world, for that matter, experienced an unusually hot summer with the mercury rising up beyond 40 degrees centigrade in some parts of Korea. Weather watchers that it was the hottest in 110 years in Korea and some even claimed that it was so in 224 years since it was recorded as worst in Korea during the Era of King Jeongjo (1752-1800) of the Joseon Dynasty.

CEO Woo’s emphasis on the importance of environment protection merits due attention, if not downright praise.

The mercury started dipping with the news of a very bad typhoon coming to hit the Korean peninsula in the fourth week of August which, however, did not happen to the great relief of the Korean people. However, CEO Woo’s motto of environment protection continues to bear the due gravity of importance.

CEO being such a person in terms of protection of the interests of mankind, it might not be amiss to check and learn what he does and how he runs his company, a top steel producer of the world.

Excerpts from his view of business management and details of information from Hyundai Steel follow:

Over the last half century since 1953, when Hyundai Steel was established as the first steel maker in Korea, the company has led the technological development of electric arc furnaces and significantly contributed to the economic development of the country. With the 2010 completion of an integrated steel mill, the first ever constructed by a private company, Hyundai Steel has grown into a global steel maker with a product portfolio that is second to none.

As part of the Hyundai Motor Group, Hyundai Steel is playing a key role in the group’s resource recycling chain marked by the byword “from molten iron to automobiles.” Iron melted in a blast furnace is transformed into new cars, which at the end of their lifespan go into an electric arc furnace where they become H piles or reinforcing bars. This recycling of our resources is not only environment friendly, but enriches the lives of everyone. And at the very heart of these efforts is Hyundai Steel.

Hampered by the recent fall in oil prices, a rise in the U.S. interest rates, and the "Abenomics" policy in Japan, the global economic crisis continues. In response to the current economic climate, businesses must strengthen their competitiveness and focus on their key competences more keenly than ever before. Based on its dual strengths in blast and electric arc furnaces, Hyundai Steel has the competitiveness and distinct competence to cope with rapidly changing global economics in a flexible manner.

The year 2015 marked a “new challenge” for Hyundai Steel. Based on innovative business initiatives such as the construction of a round bar production plant, the company has developed several marketing strategies in line with changes in the global steel market while reinforcing its status both in Korea and in the world market.

Hyundai Steel’s challenge to become a leader in the new era of steel is an ongoing process. The passion and wisdom of all our employees will be merged as we work to add a new engine of growth to our robust foundation, setting our company on the path to sustainability that will take this business into the next century. Your continued support will be much appreciated as Hyundai Steel strives to become a globally-respected steel maker by achieving the “infinite possibilities of steel.”

Hyundai Steel is the world's second largest EAF steel producer, and produces a wide variety of products ranging from its high quality H-beams, rail to reinforcing bars, hot coil, cold rolled steel and stainless cold rolled sheet. Currently, Hyundai Steel operates six factories: in the Incheon, Dangjin, Pohang, Suncheon, Ulsan provinces of Korea and in China's Chungdo province.

In addition to Hyundai Steel, the Hyundai-Kia Motor group includes steel companies such as Hyundai Special Steel and BNG Steel Co., Ltd. (formerly Sammi Steel Co., Ltd.). Hyundai Steel uses the EAF and green field 3 blast furnaces process to manufacture crude steel while BNG is stainless 9 cold rolling mills.

Hyundai Steel, in 2004, purchased the facilities of the Hanbo Steel in Dangjin. They overtook the once rundown steel company and refurnished and revitalized its long product and cold-rolling facilities to make it one of the most efficient steel plants in Korea.

Hyundai green field Dangjin blast furnace with 4,000m² extra-large one is the first in Korea. Currently HSC is operating 3 blast furnaces of 4 million annual capacity totaling 12 million crude steel green field facility at Dangjin blast furnace steel complexes. The total annual capacity of the company reaches 24 million tons per annum including two EAF plants of Incheon and Pohang ex--Gangwon industrial plant. Incheon long product, 2 million H-beam mill the largest in the world, stainless steel cold rolling mill & EAF plant, Pohang EAF and structurals, rail plant and 1.2 million Suncheon cold rolling mill and 1 million ton annual capacity 24 inch diameter steel line pipe plant at Ulsan, the largest single pipe plant in South Korea Hyundai Hysco as subsidiary.

As a steel mill specialized in automotive materials, Hyundai Steel is heavily engaged in the development of next generation steel for future automotive industry. Since the groundbreaking ceremony at the Dangjin integrated steel mill in October 2006, the first and second blast furnaces are commissioned in January and November 2010 in order. Then, the completion of blast furnace No. 3 in September 2013 enabled us to become a comprehensive global steelmaker with a total crude steel production capacity of 24 million tons including 12 million tons from blast furnaces and 12 million tons from electric arc furnaces. Furthermore, merging with cold rolling division of Hyundai Hysco in December 2013, we have now established the one-stop production system integrating all production processes from raw materials to finished products.

Electric Arc Furnace Business: Hyundai Steel possesses the largest domestic production capacity and best technology in electric arc furnace area, which produces molten iron with scrap metals. While the electric arc furnaces at Incheon, Pohang and Dangjin sites can produce up to 12 million tons of molten steel per year, we have developed the largest number of world-class premium products in Korea through more than 60 years of electric arc furnace technology and continue to actively respond ever changing steel demands by continuous investment on R&D.

Special steel business: Hyundai Steel will further strengthen its competitiveness with special steel production which boasts high intensity and abrasion resistance materials for automotive engines and transmissions. The special steel plant which takes up 236,000㎡ of land at Dangjin Steelworks is under construction and expected to produce one million ton of high purity special steel annually by introducing cutting-edge precision rolling equipment and making the best use of our existing infrastructures and molten iron from blast furnaces. The Special Steel Division will enable us to take the initiative in consolidating national economy by localizing mostly imported special steel products.

Focus on weight reduction: Hyundai Steel is dedicated to developing materials that can make automobiles lighter and safer by utilizing state-of-the-art technologies such as TWB (tailor welded blanks), hydroforming, and hot stamping. Our products are manufactured with cutting-edge technologies aimed at making automobiles more lightweight for improved fuel efficiency, reinforcing shock-resistance for enhanced safety, and bringing the strengths of each raw material to life. Our products are contributing to ensuring the safety of automobiles and to increasing fuel their efficiency and lowering their emissions--a leading cause of climate change.

Sales network: Hyundai Steel has paved the way for sustainable growth by boosting blast furnace business as a new growth engine in addition to its existing electric arc furnace based operation. We will continue to prepare for a greater future with a vision of 'Leading the New Era of Steel'.

Blast furnace business: As a steel mill specialized in automotive materials, Hyundai Steel is heavily engaged in the development of next generation steel for future automotive industry. Since the groundbreaking ceremony at the Dangjin integrated steel mill in October 2006, the first and second blast furnaces are commissioned in January and November 2010 in order. Then, the completion of blast furnace No. 3 in September 2013 enabled us to become a comprehensive global steelmaker with a total crude steel production capacity of 24 million tons including 12 million tons from blast furnaces and 12 million tons from electric arc furnaces. Furthermore, merging with cold rolling division of Hyundai Hysco in December 2013, we have now established the one-stop production system integrating all production processes from raw materials to finished products.

Electric arc furnace business: Hyundai Steel possesses the largest domestic production capacity and best technology in electric arc furnace area, which produces molten iron with scrap metals. While the electric arc furnaces at Incheon, Pohang and Dangjin sites can produce up to 12 million tons of molten steel per year, we have developed the largest number of world-class premium products in Korea through more than 60 years of electric arc furnace technology and continue to actively respond ever changing steel demands by continuous investment on R&D.

Special steel business: Hyundai Steel will further strengthen its competitiveness with special steel production which boasts high intensity and abrasion resistance materials for automotive engines and transmissions. The special steel plant which takes up 236,000㎡ of land at Dangjin Steelworks is under construction and expected to produce one million ton of high purity special steel annually by introducing cutting-edge precision rolling equipment and making the best use of our existing infrastructures and molten iron from blast furnaces. The Special Steel Division will enable us to take the initiative in consolidating national economy by localizing mostly imported special steel products.

Focus on weight reduction: Hyundai Steel is dedicated to developing materials that can make automobiles lighter and safer by utilizing state-of-the-art technologies such as TWB (tailor welded blanks), hydroforming, and hot stamping. Our products are manufactured with cutting-edge technologies aimed at making automobiles more lightweight for improved fuel efficiency, reinforcing shock-resistance for enhanced safety, and bringing the strengths of each raw material to life. Our products are contributing to ensuring the safety of automobiles and to increasing their fuel efficiency and lowering their emissions--a leading cause of climate change.