- 100,000 ton capacity factory in construction in Gunsan, Jeollabukdo
- Target annual sales of 300 billion won and mass production starting from the second half of 2019
- Maximum width 4m, thickness 200mm, length 13.5m
- To produce premium STS steel grades such as duplex
On January 3, 2019, SM Steel (CEO Kim Ki-Oh), a subsidiary of SM Group (Chairman Woo Oh-Hyun), officially announced that it has entered the stainless steel plate manufacturing business.
According to the company, SM Steel is constructing an stainless steel plate mill with an annual capacity of 100,000 tons on a 66,000m² site in Gunsan, Jeollabuk-do. The plan is to start operating from the second half of 2019 and start shipping products. The sales target is 50,000 tons for domestic and 50,000 tons for export, comprising of 300 billion won in sales.
This project, promoted by SM Steel, is a large-scale project with a total investment of 150 billion won, which includes 60 billion won for securing a business site and constructing a factory, 75 billion won for purchasing manufacturing facilities and equipment, and working capital about 20 billion won.
SM Group Chairman, Woo Oh-Hyun
In particular, SM Steel acquired 4th generation roll type leveler from SteelPlantec(Japan) and press type leveler from KOJIMA(Japan). The roll type leveler has the levelling power of up to 5,700 tons, and it is capable of processing plates up to 55mm thickness at once. And the press type leveler can automatically calibrate plates of up to 200mm thickness at a pressure of 2,500 tons even without the help from skilled workers. Through the introduction of these advanced levelers, SM Steel emphasized that it has prepared an opportunity to emerge as a world-class stainless steel plate maker.
Currently, SM Steel is constructing a factory that produces products with a maximum width of 4m, a maximum thickness of 200mm, and a maximum length of 14m. SM Steel is establishing facilities such as heat treatment furnace and leveler appropriate for producing not only standard steel grades such as 304, 316 but also high-grade stainless steel such as Duplex.
As of 2018, there is an annual demand of about 140,000 tons of stainless steel plate in Korea, and DKC has been producing and supplying it exclusively since 1990. Overseas products are being imported and distributed in response to the estimated 70,000 tons of short supply in Korea. These products are mainly high quality Japanese products and low-cost standard materials from Europe and China. Japanese products possess advantages of high-grade stainless steel with high flatness quality, width specifications of 3.5m or more, and it is supplied in Duplex as well.
SM Steel stainless steel factory, Gunsan, Korea
SM Steel plans to replace these imported products based on the quality competitiveness guaranteed by excellent facilities such as the 4th generation leveler and cost competitiveness secured by low-cost production system. In addition, the company plans to secure a position in the global market as soon as possible by constructing superior quality, productivity, and cost-effective factory compared to overseas competitors.
The news of SM Steel's entry into the stainless steel plate business is showing a positive response from market consumers. This is due to the expectation that the advancement of SM Steel will lead to favorable improvement in demand prices, quality, and delivery service through a sound bilateral competition system.
SM Steel's new investment in stainless steel plates is also being welcomed in terms of boosting local economy and employment since Gunsan region has been suffering from stagnation due to the withdrawal of the Gunsan shipyard of Hyundai Heavy Industries and the Gunsan plant of GM Korea.
Gunsan Mayor Kang, Im-Joon commented, “SM Steel’s entry into the stainless steel plate business opens up a new path in the domestic plate market, so we will not spare administrative support to assist SM Steel in achieving competitiveness in the global market.”
Roll type leveler installed in Gunsan Factory, SM Steel
Copyright© All rights reserved.Unauthorized reproduction and redistribution of the Steel&Metal Newspaper is prohibited