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Oct 17, 2006 Hyundai Steel Breaks Ground for New Steel Mill
• Assures Hyundai-Kia Automotive Group of stable supply of highest quality steel
(Seoul, Korea) Hyundai Steel Co., a unit of the Hyundai-Kia Automotive Group, broke ground today for its first integrated steel mill inside the Tangjin steel complex, 100km south of Seoul, on the Korean peninsula's west coast.
When completed in 2011, the state-of-the-art facility will be equipped with new blast furnaces capable of producing up to seven million tons of hot-rolled steel sheet and steel plate per year. Expansion plans call for new capacity to grow to 12 million tons by 2015, raising Hyundai Steel´s total production capacity to 22.5 million tons. This would make Hyundai Steel the world´s sixth-largest steel maker in 2015.
A total investment of 7.5 trillion won (approximately $8 billion) will be required for the project, with the first phase accounting for 5.24 trillion won.
"This mill will ensure a stable supply of high quality steel and our competitiveness in the decades to come," said Hyundai-Kia Chairman and CEO Chung Mong-Koo.
Hyundai Steel will source its iron ore and coal from Brazil and Australia.