Hyundai Steel Co. said Sunday it had forged a contract to buy thick plate rolling mills from China National Erzhong Group Co. for an ongoing project to expand its plant in Dangjin, South Chungcheong Province.
Under the deal, the Chinese company will supply 33 billion won ($30.5 million) worth of rolling mills, key equipment in steel production, Hyundai said in a statement.
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Hyundai Steel’s chief procurement officer Kim Beom-su (left) and China Erzhong’s general manager Sun Derun pose after signing a contract for rolling mill supply at the Korean company’s Seoul office in Yangjae-dong on Friday. (Hyundai Steel) |
Based in Deyang, Sichuan Province, China Erzhong is state-owned and one of the country’s largest heavy equipment manufacturers.
Hyundai Steel, Korea’s second-largest steelmaker, is constructing the third blast furnace at its integrated steelworks in Dangjin on the country’s west coast with 3.26 trillion won of investment.
When completed in 2013, the furnace will be able to churn out 4 million metric tons of steel a year, the company said, raising the facilities’ total output to 12 million metric tons.
The steelmaker had operated only electric arc furnaces before firing up its first blast furnace at the beginning of last year. It has also been pushing to lift its production capacity as demand soars for automobiles and other steel products globally.
The company said it also wants to boost revenue by stepping up cooperation with Hyundai Motor Group, its parent company, and other units within the group.
By Shin Hyon-hee (
heeshin@heraldcorp.com)
