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The mill, which will be located at the steelmaker’s integrated works in the South Korean city of Dangjin will be able to produce 600,000 tpy of speciality round bars and 400,000 tpy of speciality wire rod, the company said on Friday February 7.
With the project, South Korea’s second-largest steelmaker is looking to build a “stable supply system of speciality steel” for the automotive industry, it noted.
Estimated to cost 844 billion Won ($783 million), the mill follows the installation of the company’s third blast furnace in Dangjin in late 2013, which drove its installed crude steel capacity up to 24 million tpy.
The speciality steel mill will help the company to “maximise” pig iron output from the new blast furnace, it said.
Civil engineering works will start in April, and the completion of test run is scheduled for October 2015.
Overall, Hyundai Steel plans to spend 1.14 trillion Won ($1.06 billion) for its business in 2014, down from 1.91 trillion Won ($1.77 billion) in 2013.
Hyundai Steel plans to start commercial production at its planned new 1-million-tpy speciality steel mill in February 2016.