"Low-Carbon Production System Transition" POSCO Starts Construction of 2.5 Million Ton Electric Furnace in Gwangyang

Expected Annual Carbon Reduction Effect of 3.5 Million Tons

POSCO has broken ground on an electric arc furnace plant with an annual capacity of 2.5 million tons in Gwangyang.

On the 6th, POSCO announced that it held a groundbreaking ceremony for the new electric arc furnace project at the Gwangyang Steelworks. About 130 people attended, including POSCO Vice Chairman Kim Hak-dong, Park Chang-hwan, Jeollanam-do Deputy Governor for Political Affairs, Jung In-hwa, Mayor of Gwangyang, Kim Tae-gyun, Vice Chairman of the Jeollanam-do Council, Yeom Dong-il, Head of the Korea Industrial Complex Corporation Jeonnam Regional Headquarters, and executives and employees of the construction company.

POSCO held a groundbreaking ceremony for the new electric furnace project at the Gwangyang Steelworks on the 6th. From the left: Lee Baek, Head of POSCO Gwangyang Electric Furnace Project Promotion Team; Lee Cheol-mu, Head of POSCO E&C Plant Business Division; Jeong Gang-ok, Chief of Gwangyang Fire Station; Yeom Dong-il, Head of Korea Industrial Complex Corporation Jeonnam Regional Headquarters; Kim Tae-gyun, Vice Chairman of Jeollanam-do Provincial Council; Jeong In-hwa, Mayor of Gwangyang; Park Chang-hwan, Deputy Governor for Political Affairs of Jeollanam-do; Kim Hak-dong, Vice Chairman of POSCO; Lee Bon-seok, Company-wide Representative of POSCO Labor-Management Council; Lee Si-woo, CEO of POSCO; Lee Jin-su, Head of POSCO Production Technology Headquarters; Kim Yong-su, Head of POSCO Purchasing and Investment Headquarters; Lee Dong-ryeol, Director of POSCO Gwangyang Steelworks; Jeong Woo-young, Head of POSCO Investment Engineering Office. Photo by POSCO.

To transition to a low-carbon production system, POSCO plans to invest approximately 600 billion KRW to complete the large electric arc furnace by the end of 2025 and begin full-scale operation from 2026.

POSCO plans to produce products by applying a ladle metallurgy technology that either directly uses molten steel produced in the electric arc furnace or mixes it with molten steel produced in the blast furnace. The gas generated during electric arc furnace operation will be used to preheat scrap, thereby improving energy efficiency.

By producing 2.5 million tons of molten steel annually through the electric arc furnace, it is expected to reduce carbon dioxide emissions by up to approximately 3.5 million tons per year compared to the existing POSCO blast furnace method.

Kim Hak-dong, Vice Chairman of POSCO, is delivering a commemorative speech at the groundbreaking ceremony for the new electric furnace project at Gwangyang Steelworks on the 6th. (Photo by POSCO)

In particular, the electric arc furnace will not only reduce carbon dioxide emissions but also enable the production of high-grade steel, which was previously limited in the electric arc furnace method, through the application of ladle metallurgy technology. It is expected to flexibly respond to the diverse demands of customers who want high-quality products.

The new electric arc furnace construction project involved about 160,000 person-days of construction workers, which is expected to contribute to job creation in the Gwangyang area and the revitalization of the local economy.

Vice Chairman Kim said, "Amid rapidly changing management environments due to the global climate crisis and new trade regulations, POSCO will establish a swift and competitive low-carbon production system starting with this new electric arc furnace."

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