Hyundai Metal’s Dangjin plant/ Courtesy of Hyundai Metal
Hyundai Metal stated Friday it has shifted to an emergency administration mode in response to rising challenges, together with the latest imposition of metal tariffs by america and an ongoing strife with unionized staff.
The corporate introduced that every one executives have taken a 20 p.c pay minimize efficient Thursday, whereas the corporate has begun reviewing a voluntary retirement program for workers.
As well as, the corporate plans to attenuate abroad enterprise journeys and implement excessive cost-cutting measures throughout operations.
The choice by Hyundai Metal, Korea’s second-biggest steelmaker by gross sales, displays the mounting strain dealing with the home metal business.
Hyundai Metal has already scaled again operations at its Pohang plant resulting from weakened demand brought on by a downturn within the home development market. It is usually grappling with the inflow of low-priced metal merchandise from China and Japan, which have eroded its home market share.
The corporate’s state of affairs has been exacerbated by U.S. President Donald Trump’s choice to impose a 25 p.c tariff on metal imports to America, together with items from Korea, which went into impact this week.
Moreover, Hyundai Metal has been locked in extended wage negotiations with its labor union since September. The union has performed a number of strikes, together with partial and full-scale walkouts, disrupting manufacturing.
„With out robust self-rescue measures, bettering the corporate’s monetary state of affairs amid the extreme home and international crises could be extraordinarily troublesome,“ the corporate stated. (Yonhap)
