POSCO Strengthens Foundation for Industrial Gas Market Entry by Expanding Oxygen and Nitrogen Tanks

On the 27th, Groundbreaking for Oxygen and Nitrogen Storage Tanks at Pohang Steelworks... Total Investment of 70 Billion KRW in Gwangyang and Pohang Steelworks

In 2023, Total Oxygen and Nitrogen Storage Capacity at Both Steelworks Expanded to 106,000 Tons,

Oxygen and Nitrogen Facilities Expected to Contribute to Stable Supply of Industrial Gases for Semiconductor, Shipbuilding, and Other Upstream Industries

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik] POSCO is laying the foundation for entering the industrial gas market by expanding the oxygen and nitrogen storage tanks operating at its steelworks.

On the 27th, POSCO held a groundbreaking ceremony for the "Oxygen and Nitrogen Storage Tank Expansion Project" at the oxygen plant of the Pohang Steelworks, attended by Yoon Deok-il, Head of the Management Planning Division, Lee Baek-hee, Head of Pohang Steelworks, and Jung Seok-mo, Head of the Industrial Gas Business Promotion Team.

Yoon Deok-il, Head of the Management Planning Division, stated, "Based on the largest domestic oxygen and nitrogen production and storage facilities owned by POSCO, we expect to not only enhance the supply stability of industrial gases for front industries such as semiconductors and shipbuilding in Korea but also contribute to revitalizing the regional economy."

Currently, POSCO owns oxygen and nitrogen storage tanks with capacities of 36,000 tons at the Gwangyang Steelworks and 49,000 tons at the Pohang Steelworks. During the steelmaking process, oxygen and nitrogen are self-produced and used for combustion of iron ore and coal, and removal of carbon impurities, with the surplus stored and supplied externally.

Oxygen and nitrogen are essential industrial gases used not only in steelmaking but also in various industries such as semiconductors, shipbuilding, chemicals, and automobiles. The domestic distribution market size, excluding direct transactions between large corporations, reaches approximately 4.5 million tons annually. With the recent boom in Korea's semiconductor and shipbuilding industries, demand continues to increase, making stable supply chains especially important for small and medium-sized enterprises.

Accordingly, POSCO plans to invest about 70 billion KRW to expand the existing oxygen and nitrogen storage tanks, establishing a system that can actively respond to both internal use and external demand. By the second half of 2023, the storage tanks at Gwangyang and Pohang Steelworks will be expanded to 46,000 tons and 60,000 tons respectively, enabling a total storage capacity of 106,000 tons of oxygen and nitrogen across both steelworks.

Based on this, starting in 2024, POSCO will begin actively supplying external demand by selling 450,000 tons, equivalent to about 10% of the domestic annual oxygen and nitrogen distribution market demand, to distributors. The daily supply volume will be about 1,200 tons, equivalent to around 60 tanker trucks, expected to contribute not only to regional economic revitalization but also to supply stability for gas distributors and small and medium-sized consumers.

Meanwhile, POSCO is fostering industrial gases as a new growth engine aligned with the company's ESG management through continuous investment. Utilizing existing facilities, POSCO plans to expand the supply of oxygen and nitrogen and promote the localization of rare gases such as neon (Ne), xenon (Xe), and krypton (Kr) in collaboration with small and medium-sized enterprises, thereby establishing a win-win model in the domestic industrial gas market.

Gwangyang = Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik hss79@asiae.co.kr

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