현대제철 통합보고서

Keeping in step with the needs of key stakeholders for eco-friendliness, Hyundai Steel is striving to establish a foundation to lead the next generation hydrogen ecosystem. In October 2020, Hyundai Motor, Korea Gas Corporation, HyNet, and Hyundai Glovis, amongst others, signed a memorandum of understanding for the development of the hydrogen distribution industry for hydrogen vehicles, and announced a business plan to supply high purity hydrogen and expand related infrastructure. Moving forwards, to foster the hydrogen business area as a new avenue of growth into the future, Hyundai Steel plans to ¡ã Establish and expand hydrogen production and distribution facilities ¡ã Introduce FCEV at key business sites and expand usage of hydrogen vehicles ¡ã Establish an eco-friendly, hydrogen fuel cell generation system. Further, we will prepare for sluggish growth in the manufacturing sector by strengthening our electric furnace capacities and expanding downstream(e.g. by entering the automotive components business, expanding hot stamping operations, etc.), and will respond to the decrease in steel trade – caused by saturation of the domestic market and carbon borders – by securing our overseas supply chain and establishing a global steel association.

In line with strengthened eco-friendly regulations on the construction industry, the supply of eco-friendly raw materials and carbon neutrality across the supply chain are expected to emerge as key issues in the steel industry as the demand for eco-friendly materials increases. With green building regulations tightening around the world, the demand for eco-friendly materials in steelmaking is naturally on the rise. In the U.S., the state of California has mandated the installation of solar panels for new homes since 2020, and public buildings in South Korea will also be required to undergo green modelling beginning in 2025. The government(Ministry of Land, Infrastructure and Transport) is seeking to promote green buildings and has recently announced a "Green Building Revitalization Plan for Carbon Neutrality", which includes support tasks for green remodeling and zero-energy buildings. Construction companies are one of Hyundai Steel's main customers, and we expect sales of eco-friendly steel products to increase as the demand for eco-friendly construction increases. Moreover, in the future, it is expected that eco-friendly materials will not only be mandatory for public construction, but also for other areas of construction, too – and this will have a positive impact on our revenue. To proactively respond to the supply chain risks that can arise from such market changes, Hyundai Steel has obtained eco-friendly certification and is currently developing new business opportunities. In 2020, we obtained EPD certification for our steel plate products, such as hot-rolled, cold-rolled, plated, and thick plates, and hence established a bridgehead for entering the European market, which has strict environmental regulations. In the same year, we also laid the foundation for strong sales growth by obtaining GR certification from the Ministry of Trade, Industry & Energy for the first time. On top of this, Hyundai Steel is working with customers to conduct research on reducing the weight of steel battery cases. This will secure our competitiveness in the electric vehicle market and proactively ensure a source of demand, with the commercialization of steel battery cases expected to generate a demand for steel of approximately 100,000 tons(by 2025) – representing 1 million electric vehicles. Furthermore, Hyundai Steel holds technology expositions to provide improved opportunities for our suppliers to expand their markets and foster their capabilities to manage climate change risks. At the Hyundai Steel Tech Show 2020, which was conducted virtually in compliance with government COVID-19 quarantine guidelines, we held a ‘procurement system briefing' for 244 suppliers to improve their understanding of procurement policies, as well as selecting outstanding eco-friendly proposals and eco-certified suppliers for the ‘eco-partnership certification’. Moving forwards, Hyundai Steel will proactively respond to increasing domestic and international environmental regulations and strive to dominate the electric vehicle market. Going further, we will also develop methods for recycling slag, produced as a by-product of electric furnace processes, in asphalt concrete – and by pivoting to such research that enhances our electric furnace-related capabilities, we will expand our production of eco-friendly construction materials and manage risks across our supply chain.

The economy has experienced significant contraction due to the global pandemic. Accordingly, Hyundai Steel is seeking to promote sustainable growth by reinforcing our corporate fundamentals. In particular, we will reorganize our business structure to focus our capabilities on our core businesses and high value-added products. We are also operating a company-wide emergency response system to minimize production disruptions caused by the spread of infectious diseases. Company-wide codes of conduct were established in response to the spread of infection and all employees are encouraged to comply. We are also striving to establish a preemptive risk response system through which we can respond to threats and opportunities, and monitor and predict changes in the environment inside and outside of the company.