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Hyundai Steel Signs MOUs with European Partners to Supply Low-Carbon Steel Plates

Partnerships with Tawesco and Eusider aim to meet EU's stringent decarbonization policies
South Korea
h 004020.KO Mid and Small Cap 2000
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Hyundai Steel announced on June 25 that it has signed Memorandums of Understanding (MOUs) with Czech auto parts maker Tawesco and Italian automotive steel processor Eusider to sell low-carbon steel plates. These strategic agreements aim to penetrate the European market, responding to increasing demand for eco-friendly automotive materials.

Traditionally, automotive steel plates are produced using materials from blast furnaces. However, Hyundai Steel plans to reduce carbon emissions by combining electric and blast furnace production systems. The company is set to begin tentative production of low-carbon steel sheets in September.

Tawesco and Eusider supply automotive steel plates to major European automakers such as Volkswagen and Stellantis. As the European Union (EU) tightens its decarbonization policies, automakers are increasingly demanding eco-friendly parts from their suppliers.

To remain competitive, major Korean steelmakers like Hyundai Steel are shifting towards low-carbon steel products. The EU’s Carbon Border Adjustment Mechanism (CBAM) imposes stricter carbon regulations on steel products, compelling exporters to adopt greener production methods. Hyundai Steel, which produces 5 million tons of automotive steel sheets annually, aims to sell 20% of its total output to global automakers this year, with the European market accounting for 40% of its exports. The CBAM affects approximately 25% of the EU market.

These partnerships with Tawesco and Eusider underscore Hyundai Steel’s commitment to sustainability and its strategic move to align with global decarbonization trends.

 

 

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