Hyundai Steel was already a major producer of steel beams and such for construction, forming them out of melted scrap steel.
The Korean carmaker is bucking decades of automotive history by tapping its Hyundai Steel unit to produce virgin steel for cars rather than buying it from suppliers.
If Hyundai is making steel rather than importing it from places like Japan or China, it can control prices and ensure adequate supply for its rapidly growing automotive business.
If Hyundai is making steel rather than importing it from places like Japan or China, it can control prices and quality, and ensure adequate supply for its rapidly growing automotive business.
It is understandable that Hyundai is moving to protect its interests by producing steel, said CSM Worldwide analyst Jim Gillette, who expects a significant steel shortage by mid-decade.
By eliminating the bulky V6-engine option in favor of a smaller, 4-cylinder turbocharged engine, Hyundai could design the car on a smaller, lighter steel frame.
Hyundai plans to increase the use of high-tensile steel in its cars by up to 50% by 2015, resulting in car-body frames that are 10% lighter.
Hyundai Motor includes the makers of Hyundai and Kia automobiles, parts vendors, logistics firms and the steel company.
Hyundai Motor includes the makers of Hyundai and Kia automobiles, parts vendors, logistics firms, the steel company and a shipping line.
Hyundai leaned on 4-cylinder engines and its own high-tensile steel to trim 128 pounds from last year's Sonata.
In 2006 the steelmaker embarked on a massive investment and construction project to build blast furnaces to produce high-quality virgin steel for cars, ships and consumer durable goods for parent Hyundai Motor and other customers.
Hyundai Motor Co. is bucking decades of automotive history by producing its own virgin steel instead of buying it from suppliers.
Currently, the top five companies that account for a third of stock holdings, he says, are non-Hyundai blue chips SK Telecom, power utility KEPCO, Samsung Electronics, Samsung Fire and Marine Insurance, and steel giant POSCO.
But even more important, Hyundai thinks it can gain a strategic advantage by using its own metallurgists to develop exclusive lightweight, high-strength steel alloys it needs to satisfy higher fuel economy standards.
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