POSCO Inter, Creating a Steel Scrap Resource Circulation Ecosystem with SMEs

POSCO International is establishing steel scrap collection bases in collaboration with small and medium-sized enterprises (SMEs) to create a resource circulation ecosystem for steel materials.

POSCO International plans to invest approximately 20 billion KRW by 2025 to establish steel scrap collection bases nationwide. It aims to set up a procurement system that supplies 500,000 tons of steel scrap annually entirely to POSCO.

As part of this effort, the first collection base was launched in April last year in Hwaseong, Gyeonggi Province, and by the end of 2022, four steel scrap collection bases were established. An additional four new bases are scheduled to be set up in the second half of this year.

The steel scrap business operates by POSCO International leasing the latest equipment to small scrap companies across the country, which then collect and process high-quality steel scrap. The processed scrap is finally sold to POSCO through POSCO International.

From the perspective of co-prosperity with SMEs, POSCO International provides the latest compactors and eco-friendly electric excavators at minimal rental fees to reduce financial burdens. By taking responsibility for purchasing the finished processed steel scrap, it also supports the management stability of its partner companies.

Electric excavator (left) and compressor supported by POSCO International at the steel scrap collection base.
[Photo by POSCO Inter]

Recently, as part of the steel industry's carbon neutrality initiatives, the use of steel scrap in steel production processes has been steadily increasing. Compared to the blast furnace method that uses coal, adopting the electric furnace method using scrap can reduce carbon dioxide emissions to less than 25%. POSCO plans to introduce electric furnaces at the Gwangyang Steelworks in 2026 as part of its '2050 Carbon Neutral Roadmap' and will continue to expand the use of scrap to reduce carbon emissions.

A POSCO International official said, "We feel a sense of accomplishment in realizing carbon neutrality through co-prosperity with SMEs and resource circulation via the collection base business," adding, "We will continue to strive to develop this into a future-oriented and eco-friendly platform business by integrating new ideas into existing industries."

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