Hyundai Steel announced on December 8 that it will invest a total of KRW 170 billion by 2032 to enhance low-carbon steelmaking competitiveness, including the installation of new shredder facilities and scrap sorting lines at its Pohang and Dangjin plants.
A shredder pulverizes scrap collected from end-of-life vehicles, appliances, and construction waste to remove impurities, producing high-grade “shredded scrap” with superior iron content and consistency. Hyundai Steel plans to first invest KRW 22 billion in the southern Gyeonggi region to establish an advanced processing line encompassing shredding, sorting, and refining. The company aims to gradually expand supply capacity based on the performance of this line.
Construction of the new facility will start in the first half of 2027 with commercial operation scheduled for 2028. The system will be equipped with high-speed hammer shredders, separation devices for non-ferrous and non-magnetic materials, and dust collection equipment.
Hyundai Steel is also conducting R&D to upgrade ordinary scrap into high-quality material. A pilot sorting and refining facility has already been installed in Pohang, and the project will be expanded through government-backed R&D programs starting in 2026.
As the steel industry accelerates its shift to electric-arc-furnace steelmaking—which emits only about one-quarter of the carbon produced by the blast-furnace route—securing premium scrap has become a top priority. However, Korea’s scrap self-sufficiency rate remains at 80–90%, insufficient to meet growing demand.
To address this, Hyundai Steel plans to secure additional prime scrap and upgrade obsolete scrap into high-grade material through technology and strategic partnerships. Since 2023, the company has supported KRW 20 billion in investments for three partner scrap processors and introduced new programs to enhance waste-handling capabilities, strengthening its supply network.
“This investment strengthens the foundation for transitioning to a carbon-neutral system while reinforcing shared growth with our partners,” a company official said.
Hyundai Steel continues to execute a long-term roadmap for carbon neutrality, including a hybrid electric-arc and blast-furnace production system and the development of hydrogen-based technologies.
