Hyundai Plans Steel Plant
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SEOUL — Hyundai Group, South Korea’s largest group of companies, said it will invest $5.79 billion in a steel plant, defying government opposition.
The decision to proceed with what would be Korea’s second-largest steel plant reflects the group’s desire to guarantee low-cost steel supplies for its mainstay automobile and shipbuilding businesses. It also comes nine months after Hanbo Steel Co., the No. 2 manufacturer after Pohang Iron & Steel Co., collapsed under $6.2 billion of debt.
Lim Chae Min, an official at the Ministry of Trade, Industry and Energy, declined to comment, adding that the government can only advise Hyundai regarding its steel business.
In November, the Korean government nixed Hyundai’s plans to build a steel mill, saying this would cause a glut in the industry and damage the environment.
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