SEOUL -- Specialty automotive steel and nonferrous metals are at the heart Hyundai Steel's recently unveiled strategy for doubling sales within 10 years.

Hyundai Steel's blast furnaces: The company is stepping up its ultra-high tensile strength steel and nonferrous metals businesses.

The South Korean steelmaker is gearing up to mass-produce its recently developed 1,500-megapascal high tensile strength steel for use in automobile bodies, while in nonferrous metals, it aims to bolster its zinc and aluminum businesses. Having merged with group company Hyundai Hysco, a cold-rolled steel maker, in July, Hyundai Steel aims to double consolidated sales from their current level to 31 trillion won (about $26.3 billion) by 2025.

The new program calls for consolidated sales to surge 55% from the 2014 level to 26 trillion won by 2020, with specialty steel products accounting for 1.5 trillion won. The company also aims to generate sales of 2.5 trillion won from expanded overseas manufacturing operations, 1 trillion won from its business of producing lighter automobile bodies, and 1.5 trillion won from new products and expanded market share.

Steel products for automotive use will play an especially large role. The company's specialty steel division has 60 components under development, including engine crankshafts, gears and shafts for transmissions and constant-velocity joints for chassis. Of these, 14 items are ready for manufacture. The company aims to start trial production late this year and commercial production in February 2016.

Abroad, Hyundai intends to raising production in countries such as China and Mexico to better supply Hyundai Motor and Kia Motors, its group companies. It also aims to increase its output and sales of cold-rolled steel sheet.

The company already produces 1,000-megapascal high tensile strength steel, which allows for lighter automobile bodies. Hyundai Motor requested the steelmaker to turn out a 1,500-megapascal variety to improve safety in the case of collisions and further reduce vehicle weight.

To boost production and sales of nonferrous-metal products, Hyundai Steel is installing a facility to produce galvanized sheet iron and aluminum-coated sheet iron at its cold-rolling plant.

The company has also integrated its production and marketing processes with those of Hyundai Hysco. It estimates the merger will cut costs by 324 billion won in 2015 and create 560.4 billion won from increased sales and other synergistic effects.

Twin growth engines

Hyundai Steel's earnings have been solid despite increased steel production in China pushing down international prices of the commodity. In the first half of 2015, the company's consolidated operating profit surged 23% on the year to 773.1 billion won. Shipments of steel bars expanded on a recovery of construction activity in South Korea, and sales of high-end products, including steel sheet for automotive use, were strong.

Due in part to the release of a new model of the Hyundai Tucson SUV, South Korea's auto production in January-June climbed 3.3% on the year to 2,254,000 vehicles, according to the Korea Institute for Industrial Economics and Trade. Hyundai Steel is expected to do well through dealings with its fellow members in the Hyundai Motor group of companies.

But with the won remaining strong against the yen, South Korea's auto industry is in for tough competition. In July, Korea Investment & Securities lowered the target stock price for Hyundai Steel, citing concerns that the strong won will weigh on its business.

The company must also diversify its client base and product offerings if it is to keep on growing. "Hyundai Steel has its hands full serving Hyundai Motor, but it is considering doing business with other automakers as well," a source close to the company said.