In a statement, SMS group said it will equip the new facility with a 115-metric-ton DC electric arc furnace with scrap charging system, a five-strand caster, walking beam furnace and an 18-housingless-stand rolling mill. 

The plant, which is to be built at the company’s Dangjin site, will produce rebar in diameters ranging from 10 mm to 35 mm. It will be capable of making 1 million metric tons annually. Start-up is scheduled for 2025. 

YK Steel parent Daehan Steel Co. Ltd. originally intended to move and upgrade an existing YK Steel plant. But it later scrapped that plan and decided to build anew. 

“This strategic decision to build a new plant underscores the growth plans of Daehan Steel of becoming one of the country’s market leaders with YK Steel Co. in the rebar manufacturing sector. The new plant project also aims at achieving more sustainable production at minimal operating costs,” SMS group said.