POSCO to expand auto steel sheet production

POSCO executives and local government officials take part in a groundbreaking ceremony for the Gwangyang 7 Continueous Galvanizing Line for auto steel sheet production at POSCO Steelworks in Gwangyang, South Jeolla Province, Thursday. / Courtesy of POSCO

By Park Jin-hai

The nation’s largest steelmaker POSCO will invest 255.4 billion won to build a mill to produce steel for high-end vehicles.

The company broke ground for the Gwangyang 7 Continuous Galvanizing Line in South Jeolla Province, Thursday, to cement its position as the world’s second-largest steelmaker for advanced high strength steel (AHSS), after Luxemburg-based ArcelorMittal.

When completed in June, 2017, the mill will produce 500,000 tons of AHSS each year.

“When it is completed and other overseas auto steel production facilities are in operation, our total annual output will reach 10 million tons in 2017,” a POSCO spokesman said.

Demand for AHSS is rising because it is about 10 percent lighter but more than twice as strong as current steel sheets for cars.

POSCO operates seven plants at home as well as four overseas plants in China, India and Mexico that produce AHSS. The company is also building a plant in Thailand

Last year, the plants churned out a total of 8.5 million tons of the sheets.

The steelmaker plans to have six plants operating by 2017, but has not revealed further details.

POSCO plans to save on construction costs by applying its own innovative engineering technologies -- including smaller anneal furnaces.

Steel from the new facilities will be supplied to global carmakers Volkswagen, General Motors and Toyota.