OCI-Posco Chemical Joint Venture P&OChemical Breaks Ground on High-Purity Hydrogen Peroxide Production Plant

OCI 49%, POSCO Chemical 51% Stake with Commercial Production Target in 2022

[Asia Economy Reporter Hwang Yoon-joo] OCI and POSCO Chemical have begun construction of a hydrogen peroxide plant to strengthen their competitiveness in the advanced industrial materials market.

On the 28th, OCI held a groundbreaking ceremony for the new plant of the joint venture P&O Chemical, established with POSCO Chemical, at the national industrial complex in Taein-dong, Gwangyang-si, Jeollanam-do. About 20 officials attended the ceremony, including Jang Hyung-gon, Director of Economic Welfare Bureau of Gwangyang City, Min Kyung-jun, CEO of POSCO Chemical, Kim Jong-guk, President of P&O Chemical, as well as Kim Taek-jung, President of OCI, and Kim Yoo-shin, Vice President of OCI.

The newly constructed plant will be established on a 42,000㎡ site near the OCI Gwangyang plant, aiming for commercial production in 2022. It plans to produce 50,000 tons of hydrogen peroxide annually to supply semiconductor and display companies, with steelmaking by-products, the raw materials for hydrogen peroxide, supplied by POSCO Chemical.

In April 2019, OCI signed a memorandum of understanding (MOU) with POSCO Chemical for strategic cooperation in the chemical business using steelmaking by-products and the establishment of a joint venture. Since then, they have discussed specific business plans for producing industrial high-purity hydrogen peroxide. In July last year, the joint venture P&O Chemical, with OCI holding 49% and POSCO Chemical 51% of the shares, was officially launched, marking the full-scale entry into the high value-added materials business.

Through this plant construction, OCI plans to secure high-quality raw materials more stably and economically, further strengthening its competitiveness in the currently operating hydrogen peroxide business. POSCO Chemical intends to maximize added value by producing chemical products using steelmaking process by-products as raw materials.

Hydrogen peroxide (H2O2) is a representative oxidizing agent used in disinfectants and bleaches, and especially high-purity hydrogen peroxide is used for cleaning processes in advanced fields such as semiconductors and displays.

Since starting commercial production of hydrogen peroxide in 1979, OCI has developed various basic and fine chemical businesses over the past 40 years and currently produces hydrogen peroxide at its Jeonbuk Iksan plant with an annual production capacity of 85,000 tons. Additionally, OCI is focusing its core capabilities on semiconductor material production by converting part of the polysilicon production line for solar power at its Jeonbuk Gunsan plant to semiconductor use.

Kim Taek-jung, President of OCI, said, "This groundbreaking ceremony is significant as it represents the fruit of the trust and cooperation built between OCI and the POSCO Group. With the recent increase in demand for high-purity hydrogen peroxide, we expect P&O Chemical to seize this market environment change as an opportunity and lead the high value-added materials market by supplying high-quality products."

This content was produced with the assistance of AI translation services.