Key Points
Hyundai Steel halts Incheon rebar plant due to oversupply
Executives take 20% pay cuts amid financial strain
Union strikes disrupt production since September
US steel tariffs worsen market challenges
The rebar plant in Incheon, just west of Seoul, will be suspended for the entire month of April, a company spokesperson said, adding the two other rebar plants will remain operational, reports Yonhap news agency.
"This is not a regular maintenance closure but a production cut due to a deteriorating market condition," the spokesperson said. "We have made the decision to help normalise the rebar market even if we have to suffer immediate losses."
Hyundai Steel produces rebar and steel sections at the Incheon plant, with an annual production capacity of about 1.5 million tons and 2 million tons, respectively.
The temporary shutdown of Hyundai Steel's rebar plant will help ease an oversupply in the market where steelmakers suffer from declining product prices amid tougher competition, the spokesperson said.
On March 14, Hyundai Steel entered an emergency management mode in response to growing challenges, including the recent imposition of steel tariffs by the Trump administration and ongoing strife with unionised workers.
All company executives took a 20 percent pay cut effective March 13, while the company began reviewing a voluntary retirement program for employees.
The company has been locked in prolonged wage talks with its union since September. The union has conducted multiple strikes disrupting production.
On Feb. 24, it already suspended its cold-rolled steel facility in Dangjin, about 80 kilometers southwest of Seoul, in the wake of a monthslong strike by its workers demanding pay hikes.
The pickling line/tandem cold mill (PL/TCM) facility is a key part of the company's integrated steel mill in Dangjin.
The company's situation has been exacerbated by U.S. President Donald Trump's decision to impose a 25 percent tariff on steel imports to America, including goods from South Korea.
