By Kim Yoo-chul
POSCO has started to mass produce bismuth-based free cutting steel, which is environmentally less harmful than a lead-based product.
The free cutting steel is used for televisions and cars due to its easiness to handle.
The Korean steel maker plans to replace 35,000 tons of the special-purpose steel imported a year with its product. Worldwide, about 1.5 million tons are used annually, meaning POSCO will be able to export it.
Already, LG Electronics is using the POSCO product for its televisions.
Samsung and Hyundai Motor Group are expected to follow suit.
In a statement, POSCO said the bismuth steel is eco-friendly and replaces the current lead-based system, thereby eliminating health hazards to those on production lines as well as consumers.
A POSCO spokesman Jung Jae-woong declined to unveil the actual timing of production but added the special steel will be used in all LG Electronics’ TV lineup after a limited start in July last year.
The development and partnership has come after POSCO and LG Electronics are being asked to boost profitability in 2012.
POSCO’s chief financial officer Choi Jong-tae recently said the company’s fourth quarter operating profit will probably decrease to below 1 trillion won and also he expects global steel prices to remain weak hit by an oversupply.
LG Electronics is also unexpectedly busy rolling out more premium and affordable TV sets to better compete with its biggest rival Samsung Electronics by cutting costs in materials, according to LG officials.
``Because the bismuth steel is a high-end product, we hope it will help us increase our profitability,’’ POSCO spokesman Jung said.