Hyundai Steel, a steel manufacturer in South Korea, has decided to stop operations at its stainless steel plant in Incheon by the end of this month.

Hyundai Steel has produced stainless steel products at its Incheon plant since 1990. The annual production peaked at 200,000 tons and it has recently fallen below 100,000 tons recently.

Hyundai Steel made this decision due to an influx of Chinese-made products and declining sales at its affiliates and major customers Hyundai Motor and Kia Corporation.

Hyundai Steel has recently notified its labor union of the decision. After closing the Incheon plant, the company will transfer the employees to other plants.