Hyundai Steel Co., South Korea’s second-largest steelmaker, reported an 84% decline in net profit for 2025 compared to the previous year, citing a downturn in the construction sector and increased protectionism. The company’s net profit fell to 1.4 billion won from 8.8 billion won in 2024, according to a press release. Operating profit, however, increased by 37% to 219.2 billion won during the same period, while sales dropped by 2.1% to 22.73 trillion won.
The company attributed the profit increase to higher sales of premium products and government initiatives to restrict the influx of low-priced steel imports. Hyundai Steel plans to boost profitability by commencing mass production of third-generation advanced high-strength steel (AHSS) in the first quarter. Additionally, it aims to expand the supply of thick steel plates for offshore wind power facilities and nuclear reactors in the current year.
Hyundai Steel is in the process of constructing a 2.7 million-ton-per-year electric arc furnace (EAF) steel mill in Louisiana, slated for completion by 2029. This facility will supply automotive steel to U.S. plants owned by its affiliates, Hyundai Motor Co. and Kia Corp. The company intends to start construction of the plant in the third quarter and commence commercial production in the first quarter of 2029. The $5.8 billion investment plan was announced in March last year as part of Hyundai Motor Group’s broader U.S. investment strategy.
