Gwangyang City’s ‘Steel Industry Re-advancement Technology Development Project’ Passes Preliminary Feasibility Study

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Gwangyang City announced that the preliminary feasibility study for the ‘Steel Industry Re-advancement Technology Development Project,’ part of the next-generation new materials industry complex project prioritized as a mayoral pledge, was finally approved by the Ministry of Science and ICT on the 1st.

The ‘Steel Industry Re-advancement Technology Development Project’ involves Gwangyang City in Jeonnam, Pohang City in Gyeongbuk, and Dangjin City in Chungnam. The Ministry of Trade, Industry and Energy will invest a total project cost of 135.5 billion KRW (92.4 billion KRW national funds, 10.3 billion KRW local funds, 32.8 billion KRW private funds) from 2021 to 2025 to promote 19 R&D tasks in two fields: high value-added steel materials and eco-friendly resource circulation.

Starting next year, the Ministry of Trade, Industry and Energy will invest 6 billion KRW in equipment construction costs at the Gwangyang Iksin Industrial Complex to commercialize high manganese steel, officially launching projects such as high manganese steel R&D and corporate support.

High manganese steel is produced only at POSCO Gwangyang Steelworks, the sole domestic steel city producing it. The city plans to support companies for R&D and product manufacturing to expand commercialization of high manganese steel products in connection with the Metal Processing Heat Treatment Center.

Additionally, 24 billion KRW will be invested in the R&D project to focus support on developing processing technologies for multi-variety customized steel materials and application technologies that are difficult to utilize due to low technological capabilities of small and medium steel companies despite production by regional large corporations, high value-added resource circulation technologies, and materials such as high manganese steel and internal corrosion-resistant steel.

So far, Mayor Jeong Hyun-bok of Gwangyang City has visited the Ministry of Trade, Industry and Energy to request the prompt approval of the preliminary feasibility study for the Steel Industry Re-advancement Technology Development Project, stating, “To overcome the steel industry’s difficulties caused by the global economic downturn, protectionism, and the US-China trade dispute, we will strengthen the global competitiveness of small and medium steel companies and actively support small businesses with insufficient technological capabilities to take a step forward through this project.”

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