POSCO Expands 'Oxygen and Nitrogen Tanks'... Full-Scale Entry into Industrial Gas Sector

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[Asia Economy Reporter Moon Chaeseok] POSCO is expanding the oxygen and nitrogen tanks at its Pohang and Gwangyang steelworks and making a full-scale entry into the industrial gas market.

On the 27th, POSCO announced that it held a groundbreaking ceremony for the "Oxygen and Nitrogen Storage Tank Expansion Project" at the oxygen plant of the Pohang Steelworks. Currently, the Pohang Steelworks and Gwangyang Steelworks each have oxygen and nitrogen storage tanks with capacities of 49,000 tons and 36,000 tons, respectively. POSCO plans to invest approximately 70 billion KRW to increase the storage capacity to 60,000 tons and 46,000 tons by the second half of next year.

Oxygen and nitrogen are essential industrial gases used in various industries such as semiconductors, shipbuilding, chemicals, and automobiles, in addition to steelmaking. POSCO produces oxygen and nitrogen needed for the combustion of iron ore and coal internally and uses them, while supplying some of the surplus after storage to external customers.

Considering the continuous increase in domestic industrial demand for oxygen and nitrogen, POSCO decided to expand the storage tanks and make a full-scale entry into the industrial gas market. After the expansion, POSCO plans to sell 450,000 tons annually from 2024, which corresponds 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 about 60 tanker trucks.

POSCO stated, "Based on the largest domestic oxygen and nitrogen production and storage facilities we possess, we will contribute to stabilizing the supply of industrial gases and revitalizing the regional economy."

POSCO is developing industrial gases as a new growth engine aligned with the company's ESG (Environmental, Social, and Governance) management. Utilizing its existing facilities, POSCO is not only expanding oxygen and nitrogen supply but also promoting the localization of rare gases such as neon (Ne), xenon (Xe), and krypton (Kr) together with small and medium-sized enterprises.

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