Hyundai's New Blast Furnace is Australia's Gain

SYDNEY – January 6, 2010: Hyundai Steel Co., part of the Hyundai Automotive Group, has commenced operation of a brand new, environmentally friendly blast furnace, which makes extensive use of Australian raw materials in the production of high-quality steel for vehicle manufacturing. The furnace is the first in the world to be owned by an automotive group.

Hyundai Steel Co. held a furnace ‘lighting’ ceremony yesterday (Tuesday 5th January) to celebrate the commencement of operation of the first blast furnace at its all-new integrated steel mill in Dangjin, South Korea.

The mill represents Hyundai Steel’s determination to support the group in becoming the world’s first fully integrated automotive manufacturing operation globally. “The new steel mill will give our automotive group a competitive edge by allowing us to secure and develop our own supply of high-quality steel,” Chairman of the Hyundai Automotive Group, Mr Chung Mong-Koo stated at the ceremony.

This is the most advanced and modern, eco-friendly integrated steel mill in the world. It showcases advanced design and engineering technologies, but more importantly, the No.1 blast furnace employs the latest environmentally-friendly technologies and state-of-the-art emission control methods, reflecting the eco-friendly management philosophy of Chairman Chung, and the Hyundai Group.

Through an investment of 5.84 trillion won (approx. US$5 billion), Hyundai Steel plans to build two blast furnaces. The No. 1 furnace has an annual capacity of, has an annual capacity of 4-million tons and will use a majority of raw materials from Australia. Up to 11-million tons of iron ore and coking coal will be imported from Australia annually, representing an enormous commitment to support local industry and providing a welcome boost to the Australian economy.

The company is aiming to complete its No. 2 blast furnace by early 2011, to reach capacity of 8 million tons a year