[Column] POSCO Forgetting the Lessons of 'Hinnamno'

On the morning of the 23rd, a fire broke out at POSCO Pohang Steelworks in Dongchon-dong, Nam-gu, Pohang-si, Gyeongbuk, engulfing the area in thick black smoke. [Image source=Yonhap News]

The blast furnace at POSCO Pohang Steelworks has stopped again after 1 year and 3 months. This is an unprecedented event in the company's 54-year history, having occurred twice within less than two years. The cause was a fire that broke out on December 23, the first day of the Christmas holiday, in the cables around Blast Furnace No. 2 in the steelmaking area (where iron ore is melted to produce molten iron) at Pohang Steelworks. The fire caused a power outage, halting Blast Furnaces No. 2 to 4, as well as FINEX Plants 2 and 3 (which produce molten iron based on powdered iron ore) and the No. 1 Hot Rolling Mill. The halted blast furnace and key facilities resumed operation on the afternoon of December 25, two days later.

Fortunately, the blast furnace operation was restored within a relatively short time, so there is little disruption to steel product production and supply. However, apart from this outcome, POSCO’s safety response needs to be examined more critically. In particular, Pohang Steelworks suffered massive damage during Typhoon Hinnamnor last September. Due to the heavy rainfall brought by the typhoon, nearby rivers flooded, and water and sediment filled underground areas several tens of meters deep, causing flooding damage. Electrical equipment located underground was damaged, leading to a shutdown of the blast furnace and major plants for as long as 5 to 6 months. The estimated damage amounted to 2 trillion won. This time, the plant operation was halted due to a fire.

Regardless of the cause, the fact that the blast furnace, a core facility of the steelworks, has stopped again means that no lessons were learned from last year’s Hinnamnor incident. There was also confusion in the announcement of the fire’s cause. Initially, a broken oxygen pipe was considered the cause, but the fire authorities and POSCO later corrected this to a fire originating from electrical wiring.

Coincidentally, this fire occurred during a leadership transition period. POSCO Group has begun the process of selecting its next chairman. There are concerns that safety might be affected by the leadership change. The steel industry is a key national industry. Forward industries such as automotive, shipbuilding, and home appliances gain competitiveness through their connection with steel companies, which are upstream industries. This is why the frequent crises at POSCO, the nation’s top steelmaker, are even more worrisome.

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