INI Steel Strives for Growing
into Global Steelworks
Wins the $1 Bln export tower prize
Hyundai INI Steel has exerted itself in establishing a sold foundation in the domestic steel industry, one of the nation's key industries for more than 50 years with the goal of fostering the company into one of the global top-class steelworks.
The steelmaker has been awarded with the $1 billion export tower prize after it posted exports worth $1,052,788 during the period between July 1, 2004 and June 30, 2005, a 49 percent jump over a year earlier.
Hyundai INI Steel, established on the ruins of the Korean War (1950-53), has now grown into the second largest electric furnace steelmaker in the world.
The watersheds event of the chronology of the company, established under the name of Korea Heavy Industry Corp., as the acquisition of Incheon Heavy Industry Company Ltd in 1970. Hyundai INI Steel began to bolster its competitive edge in 1978 when it was incorporated into Hyundai Business Group. Hyundai INI Steel itself proactively underwent restructuring in the wake of the 1987 financial crisis that left many local steelmakers bankrupt.
The company acquired Gangwon Industries Ltd. and Sammi Special Steel Company Ltd. in March and December 2000, respectively, renaming them into its Pohang plant and BNG Steel, respectively to leap into a major full-fledged steelmaking company. Hyundai INI Steel has been assured of gaining momentum in evolving itself into a leading comprehensive steelmaking company.
The reason behind a series of M&As and attracting the public limelight from the global steelmaking industry is that Hyundai INI Steel has posted profits thanks to its strenuous management innovations and "concentration and choice"strategies under which the abandons business sectors that now make profits, but have no futuristic potential whereas it make aggressive investments into businesses that now lose money, but seem to be essential for future existence.
In reality, in accordance with these strategies, Hyundai INI Steel discontinued production of diamond steel plate in 1986, old ship-break business in 1987 and shipbuilding material business in 1994 in consideration of their dim futuristic prospects. On the other hand, the company has diversified its business arenas by entering news business markets ― wide flange beams in 1982, steel cast and forge in 1983, cold rolled STS steel in 1990 and heavy industry (rail, roll etc.) in 2000 ― and acquiring Hanbo Steel to enter hot-rolled steel sheet arena. Hyundai INI Steel is rated to be one of global electric furnace companies with an excellent portfolio of steel products. The company has proactively conducted such management innovation campaigns as "ATTACK21"and "Take-off 2005."Hyundai INI Steel has focused on R&D activities on the existing business lines while maximizing profits through "oncentration and choice"strategies. The company has led the electric furnace steelmaking industry by creating new demands through new product development activities.
The company introduced a facility manufacturing wide flange beams and upgraded the scope of construction materials limited to reinforcing bars. Its marketing staff succeeded in creating the demand of wide flange beams by making a pitch for the new product even before the launch of the item at that time. As a result, the annual demand of the steel product soared to 3 million tons in about 20 years and the product is showing signs of a constant rising demand thanks to an increase in steel structures, particularly lower commercial buildings. However, Hyundai INI Steel does not rest on its laurels. Thanks to continuous technological development, the company has put more energy into developing new products, including non-coated H-beams with atmosphere corrosion resistance and H-beams rolled for building architectural structure.
The company is also concentrating on expanding the demand of the existing steel products. A case in point is the Super Bar (SD500) that has acquired a more than 80 percent market share since its first production in the country following the announcement of its development in the first quarter of 2002. The Super Bar, rated to be suitable for making structures bigger and higher and longer, has contributed to raising work efficiency in building reinforced concrete structures and shorting construction period. The steel product is used for constructing such civil engineering works as longer bridges, nuclear power units and LNG receiving terminals as well as house-office buildings, high-rise skyscrapers and stadiums. Hyundai INI Steel is the only Korean steelmaker to produce such steel products as inverted angles. nw
INI Steel's products