Seoul: Hyundai Steel Co., South Korea's second-largest steelmaker, announced plans to cut production by 50% at one of its three domestic rebar plants in response to decreased demand.

According to Yonhap News Agency, the company will permanently shut down one of two production lines at its Incheon plant, which has a capacity of 1.6 million tons per year. Despite this reduction, Hyundai Steel confirmed that its other two rebar plants will continue to operate.

The decision is driven by a decline in rebar demand, attributed to a prolonged downturn in the construction industry and an oversupply in the market. Hyundai Steel emphasized that the reduction in output will not lead to layoffs, as affected workers will be reassigned to different production lines after discussions with the labor union.

An industry official noted that while domestic rebar demand reached approximately 7 million tons last year, local steelmakers possess a production capacity of 12.3 million tons, making restructuring within the industry unavoidable. The government has also highlighted rebar as a sector facing persistent oversupply in its steel industry advancement plan released on November 4, advocating for necessary restructuring.