POSCO Establishes Production System for 1 Million Tons of Eco-Friendly Giga Steel

Event Held at Gwangyang Steelworks on the 17th... Strengthening Competitiveness with Durability, Safety, and Eco-Friendliness

CEO Kim Hak-dong, Towards Becoming a Specialized Maker of Eco-Friendly Vehicle Materials...

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] POSCO, a leading company in eco-friendly materials, announced on the 17th that it has established a production system capable of producing 1 million tons of Giga Steel (ultra-high-strength lightweight steel sheets)* to respond to the demand for steel sheets for future vehicles and to secure market leadership.

On the 17th, POSCO held an event titled at the Gwangyang Steelworks, attended by POSCO CEO Kim Hak-dong, Jeonnam Governor Kim Young-rok, National Assembly member Seo Dong-yong, Renault Samsung Purchasing Director Hwang Gap-sik, and MS Autotech CEO Lee Kang-seop, among others.

In his greeting, CEO Kim Hak-dong said, “Since producing its first molten iron in April 1987, the Gwangyang Steelworks has grown into the world’s largest and best specialized steelworks producing 9.5 million tons of automotive steel sheets annually,” adding, “The establishment of the 1 million ton Giga Steel production system will surely serve as a milestone for POSCO to firmly establish a global advantage as a specialized supplier of eco-friendly vehicle materials in the rapidly growing new mobility market.”

Recently, the automotive industry has been accelerating its industrial restructuring focused on eco-friendly vehicles to comply with strengthening environmental regulations. According to market research firm IHS Markit, the global demand for giga-grade steel is expected to grow at an average annual rate of 13%, from 6.7 million tons in 2020 to 12.4 million tons in 2025. Additionally, with the increase in battery installation and safety/convenience devices in vehicles, reducing vehicle body weight has emerged as a key issue in the industry.

To respond to the mega trends of the automotive industry such as the expansion of the eco-friendly vehicle market and the demand for vehicle body lightweighting, POSCO has sequentially invested about 500 billion KRW since 2017* to build and expand giga-grade steel manufacturing facilities within the Gwangyang Steelworks site.

First, POSCO introduced a dedicated rolling mill (ZRM) for thin sheets that can produce thicknesses as thin as 0.5mm and widths up to 1,650mm, establishing a system capable of supplying a wide range of products that are difficult for other companies to produce, thereby facilitating automotive companies’ design and production processes.

In addition, to meet increasingly stringent quality control requirements from customers, POSCO newly installed and expanded equipment capable of precise temperature control during heating and cooling in the hot rolling process, and enhanced leveling capabilities to maintain maximum flatness of steel sheets without waviness across the entire surface.

Furthermore, the Gwangyang 7CGL line, which previously produced only zinc-coated steel sheets, was upgraded to produce materials for Al-HPF (Aluminum Hot Press Forming), diversifying the product portfolio from mainly cold-forming giga steel to include hot-forming products.

Giga steel sheets are classified into cold-forming and hot-forming types depending on the forming method. Cold-forming types can be manufactured into desired shaped parts through press processing without additional heat treatment, while hot-forming types are heated to over 900°C before press processing, making them suitable for producing structurally complex shaped parts. Aluminum-coated products are used for hot-forming.

POSCO’s giga steel boasts more than three times the strength of conventional aluminum materials, combined with excellent formability and cost-effectiveness, and has been steadily applied to new car models of major domestic and international automakers.

It is mainly applied to vehicle body parts that must minimize deformation upon external impact and suspension components that support vehicle body weight, proving durability and safety as well as a 15-30% weight reduction that improves fuel efficiency, extends driving range, and reduces emissions. Moreover, when comparing CO2 emissions from material production to parts manufacturing, steel emits only about one-quarter of the CO2 compared to aluminum, making it highly eco-friendly.

POSCO is currently conducting joint research with automakers to expand the application range of giga steel within vehicles and plans to accelerate the development of next-generation steel grades based on its improved facility competitiveness.

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

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