POSCO to Establish Giga Steel Plant in China... Expanding Steel Sheets for Electric Vehicles

New Giga Steel Composite Processing Plant Established in Kunshan, Suzhou, Jiangsu on the 25th
Giga Steel Sales to More Than Double by 2027

On the 25th, POSCO completed the construction of a specialized composite processing plant for Giga steel at its local processing center in China, 'POSCO-CSPC (China Suzhou Processing Center·CSPC)', to respond to the expanding demand for electric vehicles.

POSCO completed the construction of a giga steel specialized composite processing plant at POSCO-CSPC located in Jiangsu Province, China, on the 25th to respond to the growing demand for electric vehicles. The photo shows a POSCO-CSPC employee operating a giga steel specialized slitter. Photo by POSCO

About 90 people attended the completion ceremony, including Song Yong-sam, CEO of POSCO China, Kim Bong-cheol, head of the China Integrated Processing Center, Lee Hwi, Standing Committee Member of Kunshan City, Wang Jun, Director of the Economic Development Bureau, Lee Kang-seop, CEO of Simwon, and Kim Hwa-jin, head of POSOSTEM Integrated Corporation.

POSCO operates overseas processing centers at 26 locations worldwide to expand global sales. Established in 2003, CSPC is POSCO's largest specialized processing center for automotive steel sheets with a cumulative sales volume of 8.97 million tons, located in the East China region where global electric vehicle companies are concentrated. With this investment, CSPC has additionally equipped one Giga steel specialized slitter with an annual capacity of 135,000 tons and one 1,600-ton press. A slitter is equipment that cuts coils lengthwise.

Until now, CSPC faced difficulties in sufficiently ensuring quality stability and responding to increased demand when processing Giga steel using general slitters and blanking equipment. However, with the introduction of specialized equipment, it has become possible to expand sales of the high value-added product Giga steel, accelerating the electric vehicle market strategy and expecting sales growth. Blanking is equipment that stamps steel plates into various shapes using a press with installed molds.

Going forward, CSPC plans to actively pursue new orders jointly with global and large automotive parts companies in the East China region, aiming to more than double the sales volume of Giga steel, which currently accounts for about 6% of CSPC's sales, by 2027. Giga steel is an ultra-high-strength steel that can withstand loads of over 100 kg per 1㎟, a next-generation steel sheet with excellent tensile strength as well as formability. Applying Giga steel as an automotive steel sheet material offers advantages in terms of economy, weight reduction, and safety compared to alternative materials such as aluminum.

Giga steel is especially recognized as an essential material for electric vehicles, which require weight reduction to improve energy efficiency. Since electric vehicles have batteries weighing 400 to 450 kg, making their total weight about 25% heavier on average than internal combustion engine vehicles, all global electric vehicle companies are focusing on weight reduction. Among lightweight materials, Giga steel can withstand high loads, allowing the thickness of vehicle parts to be reduced and the vehicle body to be made lighter.

CSPC's new Giga steel composite processing plant first cuts the material, then produces and supplies semi-finished automotive parts through the press process. This allows automotive parts companies to reduce costs such as investment in press equipment, and CSPC can enhance added value by eliminating intermediate transportation costs.

At the completion ceremony, Heo Young-ho, Deputy General Manager of POSOSTEM, a Korean automotive parts company, said, "POSCO not only processes Giga steel but also produces semi-finished products on our behalf, significantly reducing equipment investment and labor costs, allowing us to focus our capabilities on final assembly such as welding."

Song Yong-sam, CEO of POSCO China, expressed his future aspirations, saying, "With CSPC at the center, the 12 China Integrated Processing Centers will continue efforts to become a leading company in eco-friendly future materials in the rapidly changing Chinese automotive market centered on eco-friendly vehicles by providing the highest quality products and services."

POSCO's strategy is to expand processing centers capable of composite processing of high-strength materials and to secure the eco-friendly electric vehicle market in response to the reopening of the Chinese market, which ranks first in global automobile production, and the automotive industry's shift toward electric vehicles.

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