POSCO expands production of electrical steel sheets
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POSCO Chairman Kwon Oh-joon, second from left, talks with employees after writing out wishes on electrical steel sheets at the firm’s main plant in Pohang, North Gyeongsang Province, Monday. The steelmaker completed the expansion of its electrical sheet production facility, capable of churning out 160,000 tons annually, up twofold from the previous 80,000 tons. / Courtesy of POSCO
By Lee Hyo-sik
POSCO has doubled its output of electrical steel sheets widely used in car engines and high-end consumer electronics, the latest in its efforts to manufacture more value-added, technology-intensive products.
The world’s fifth-largest steelmaker said Monday that it completed expansion of production facilities at its main plant in Pohang, North Gyeongsang Province, which churns out electrical steel sheets.
The latest expansion, which cost POSCO 124 billion won ($108 million), enables it to produce 160,000 tons annually, up twice as much from the previous 80,000 tons, the company said. It also upgraded existing facilities to produce thinner steel sheets, making it easier to process them into various forms.
“To meet growing demand for electrical steel sheets in line with the rising production of eco-friendly vehicles and premium, energy-efficient consumer electronics goods, we decided to increase the output,” POSCO Chairman Kwon Oh-joon said at a ceremony marking the completion of the firm’s hyper non-grain-oriented electrical steel (Hyper NO) plant, Monday.
“The new production facility will enable us to provide top-quality electrical sheets tailored to our clients and bolster their core competitiveness.”
POSCO estimates the global demand for Hyper NO will increase to 1 million tons in 2020 from last year’s 800,000 tons, as more people drive eco-friendly vehicles and use energy-efficient home appliances amid accelerating global warming and other environmental problems.
The sheets are used to make electric cars’ drive motors, as well as energy-efficient electronics and industrial generators.
While churning out more electrical steel sheets, POSCO plans to slash the output of conventional steel products to bolster its profitability and cope with the saturated global steel market.