Hyundai Steel Invests 170 Billion Won to Secure High-Quality Steel Scrap

Hyundai Steel (004020.KS) announced Wednesday that it has decided to invest 170 billion won ($125 million) to secure high-quality steel scrap. Steel scrap is a key raw material for electric arc furnaces that produce molten steel.

Through this investment, Hyundai Steel will introduce new shredder equipment for processing steel scrap. The company will also establish steel scrap sorting lines at its Pohang plant and Dangjin steelworks.

A shredder is equipment that removes impurities by crushing steel scrap recovered from end-of-life vehicles, home appliances, and construction waste using high-speed rotating hammers. Steel scrap processed by shredders is called "shredded scrap," a premium grade with high iron content and homogeneity.

Hyundai Steel plans to invest 22 billion won to introduce advanced raw material processing facilities in southern Gyeonggi Province, including shredders and a system covering crushing, sorting, and refining. The company will first operate a system that processes obsolete scrap into premium steel scrap through a specialized operator, then gradually expand additional shredder and refining lines based on the results.

The advanced raw material facility to be built in Anseong, Gyeonggi Province, will be equipped with high-speed hammer crushing equipment, non-ferrous and non-magnetic separation devices, dust collection systems, and quality inspection and transport facilities. Construction is scheduled to begin in the first half of 2027, with full operation starting in 2028.

Steel scrap is a key raw material for electric arc furnace systems, which generate only one-quarter of the carbon emissions produced by blast furnaces during the manufacturing process. Securing high-quality steel scrap has become a major challenge in the steel industry for stable operation of low-carbon electric arc furnaces.

"We are continuously pursuing efficiency and quality improvements in scrap processing to expand steel scrap usage," a Hyundai Steel official said. "This investment is significant in that it establishes a foundation for transitioning to a carbon-neutral system through a win-win model with partners."