POSCO breaks ground on 1 trillion KRW eco-friendly electric steel sheet plant in Gwangyang... "Production capacity of 1.13 million tons by 2025 completion"

Kim Hak-dong Vice Chairman "Firmly Establishing Status as a Global Eco-friendly Vehicle Material Supplier"

Perspective view of the 300,000-ton-per-year non-oriented electrical steel sheet factory, which POSCO has started construction on in Gwangyang-si, Jeollanam-do, aiming for completion in 2025. (Photo by POSCO)

[Asia Economy Reporter Moon Chaeseok] POSCO has begun constructing an annual 300,000-ton capacity non-oriented electrical steel sheet factory in Gwangyang City, Jeollanam-do. This expands the facilities previously only at the Pohang Steelworks to the Gwangyang Steelworks. POSCO declared that it will establish the world's best non-oriented electrical steel sheet production system to overcome supply chain risks and lead the market. This steel sheet is used as a material for eco-friendly vehicle drive motors and functions to improve the energy efficiency of home appliances.

On the 22nd, POSCO announced that it held a groundbreaking ceremony for the non-oriented electrical steel sheet factory at the Gwangyang Steelworks. The ceremony was attended by Kim Hakdong, Vice Chairman and CEO of POSCO, Kim Kyungho, Deputy Mayor of Gwangyang, Park Jinman, Head of the Jeonnam Regional Headquarters of the Korea Industrial Complex Corporation, as well as representatives and executives from customers such as Hyundai Motor, Kia, Samsung Electronics, LG Electronics, and the construction company.

Vice Chairman Kim said, "Through this investment, POSCO will establish the world's best non-oriented electrical steel sheet production system in both Pohang and Gwangyang, solidifying its status as a ‘global supplier’ leading the eco-friendly vehicle and premium home appliance markets." He added, "POSCO has achieved remarkable quantitative and qualitative growth, being selected as the world's most competitive steel company for 12 consecutive years. However, to continue growing amid rapidly changing business environments, we must proactively respond to customer demands and accelerate the development of high value-added products and solutions that lead the market."

Kim Hak-dong, Vice Chairman and CEO of POSCO. (Photo by POSCO)

The reason POSCO decided to focus on mass production of electrical steel sheets at the Pohang and Gwangyang plants is due to the rapidly increasing demand in the eco-friendly vehicle market. Electrical steel sheets are used as core materials for electric motors and generators. They contain 1-5% silicon, which provides excellent electromagnetic properties and low power loss.

Currently, POSCO has an annual production capacity of 830,000 tons of electrical steel sheets, including 100,000 tons of high-efficiency non-oriented electrical steel sheets. After the construction is completed in 2025, it will secure a total production capacity of 1.13 million tons, including 400,000 tons of high-efficiency non-oriented steel sheets.

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