POSCO Breaks Ground on Eco-Friendly, High-Efficiency Electric Steel Sheet Plant in Gwangyang with 1 Trillion Won Investment

Groundbreaking Ceremony for 300,000 Ton Annual Production of Non-Oriented Electrical Steel Plant at Gwangyang Steelworks on the 22nd

Vice Chairman Kim Hak-dong: "We Will Solidify Our Position as a Global Supplier Leading the Eco-Friendly Vehicle and Premium Home Appliance Markets"

High-Efficiency Non-Oriented Electrical Steel Production Capacity to Expand from 100,000 Tons Annually to 400,000 Tons by 2025

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] POSCO has begun construction of a 300,000-ton annual capacity non-oriented electrical steel sheet plant in Gwangyang to actively respond to the rapid growth of the eco-friendly vehicle market and the increasing demand for energy efficiency in home appliances.

At the groundbreaking ceremony held on the 22nd at the Gwangyang Steelworks, attendees included POSCO Vice Chairman and CEO Kim Hak-dong, Gwangyang Deputy Mayor Kim Kyung-ho, Park Jin-man, Head of the Korea Industrial Complex Corporation Jeonnam Regional Headquarters, as well as representatives and executives from client companies such as Hyundai Motor, Kia, Samsung Electronics, LG Electronics, and construction companies.

Vice Chairman Kim Hak-dong stated, "Today marks a new beginning as we expand the production of electrical steel sheets, previously produced only at the Pohang Steelworks, to Gwangyang," adding, "Through this investment, POSCO will establish the world's best production system for non-oriented electrical steel sheets in both Pohang and Gwangyang, solidifying its status as a global supplier leading the eco-friendly vehicle and premium home appliance markets."

He continued, "POSCO has achieved remarkable quantitative and qualitative growth, being selected as the world's most competitive steel company for 12 consecutive years. However, to sustain growth amid today's rapidly changing business environment, we must proactively respond to customer demands and accelerate the development of products and solutions that lead high value-added markets."

As carbon neutrality emerges as a new global order and social interest in the environment rises, demand for electrical steel sheets that can improve the energy efficiency of electronic devices continues to expand in domestic and international markets. In particular, demand for non-oriented electrical steel sheets, used as materials for eco-friendly vehicle drive motors, is rapidly increasing.

According to global market research firm IHS Markit, demand for non-oriented electrical steel sheets for eco-friendly vehicles is expected to grow at an average annual rate of about 20%, from 320,000 tons in 2020 to 4 million tons in 2033. It also analyzed that from 2025, demand will surpass supply, resulting in a material shortage of 927,000 tons by 2030.

In November last year, POSCO's board of directors decided to proactively respond to the eco-friendly future materials market by sequentially investing about 1 trillion KRW to establish a high-efficiency non-oriented electrical steel sheet plant with an annual capacity of 300,000 tons.

Currently, POSCO has an annual electrical steel sheet production capacity of 830,000 tons, including 100,000 tons of high-efficiency non-oriented electrical steel sheets. Upon completion of the construction in 2025, the capacity will increase to 1.13 million tons, including 400,000 tons of high-efficiency non-oriented sheets.

Electrical steel sheets are steel plates containing 1-5% silicon (Si), characterized by excellent electromagnetic properties and low power loss, and are used as core materials for motors and generators.

Since producing electrical steel sheets for the first time in 1979, POSCO plans to respond to diverse customer demands by lowering the producible thickness to a maximum of 0.1mm and expanding the width through accumulated operational know-how over more than 40 years and the latest equipment introduced this time.

Additionally, about 210,000 construction workers will participate in this project, which is expected to contribute to job creation and regional economic revitalization in the Gwangyang area.

POSCO plans to continue large-scale investments and technological development to accelerate the transition to an eco-friendly and low-carbon production system. It aims to become a top-tier steel company with world-class product competitiveness by pursuing sales strategies based on three strategic brands: New Mobility, Premium Steel Materials, and Eco-friendly Energy.

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

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