POSCO and Hyundai Steel Ordered to Suspend Blast Furnaces Amid Pollution Crackdown

South Korean steel giants POSCO and Hyundai Steel are facing crisis as the municipal administrations have ordered to shut down the operations of blast furnace for 10 days as the mills are emitting air pollutants illegally and operating blast furnace without anti pollution equipment.

In order to prevent accidents in steel industry South Korean govt has laid down provisions in article 31 of Air Quality Preservation Act.

POSCO's steel mill in Gwangyang received a notice by South Jeolla Provincial Government on 24 April'19 to curtail operations at their blast furnace for 10 days.

Followed by Hyundai Steel receiving a notice from South Chungcheong Provincial Government against its Dangjin mill on 16 May'19.

POSCO's Pohang Mill was sent a notice on 27 May'19 by North Gyeongsang Provincial Government.

However company officials shared that,"If we shut down blast furnaces for more than four to five days, molten metal will totally harden, and it would take more than three months to be able to operate the blast furnaces again,"

However the administrative measures were not considered by company officials as it is difficult to open valves of bleeders every other month due to safety issues when carrying out blast furnace maintenance work.

Thus, POSCO's Gwangyang mill scheduled its hearing on 18th Jun'19 whereas South Chungcheong provincial govt has confirmed punitive action against Hyundai Steel's Dangjin.

Officials at steelmakers claimed the latest administrative measures, if all of them are implemented, will lead to a serious blow to the industry. However one possibility is that POSCO & Hyundai would file a suit against the environmental authority.