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POSCO completes construction of electrical steel sheet factory

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By Lee Min-hyung
  • Published KST
  • Updated KST
Officials from POSCO and the government celebrate the completion of the construction of the steelmaker's new electrical steel factory at its mill in Gwangyang, South Jeolla Province, Nov. 29. Courtesy of POSCO

Officials from POSCO and the government celebrate the completion of the construction of the steelmaker's new electrical steel factory at its mill in Gwangyang, South Jeolla Province, Nov. 29. Courtesy of POSCO

POSCO has completed the construction of its high-efficiency, Hyper NO (non-oriented electrical steel sheet) plant, which is aimed at attracting international clients who manufacture eco-friendly vehicles and premium appliances, the steelmaker said Thursday.

The factory will have an annual capacity of 300,000 tons after finishing its second-phase of construction by the end of 2024. Last year, the company invested 1 trillion won ($767 million) for the new plant amid growing demand for value-added steel products.

“As a global leading supplier of high-efficiency electrical steel, we will continue supporting the success of our clients,” POSCO Group Chairman Choi Jeong-woo said. “POSCO will also expand investment in eco-friendly sectors, so we can achieve the vision of carbon neutrality.”

According to the company, demand for Hyper NO is on a gradual rise in line with the rapid market growth of electric vehicles (EV) and high-end appliances. The factory will help its customers alleviate concerns over supply shortages, it said.

POSCO is also considering building an electrical steel factory in North America to deal with the growing demand for Hyper NO there and around the world. The firm shared its plan to increase its annual production capacity to one million tons by 2030.

Only a few steelmakers in the world are capable of manufacturing unique non-oriented electrical steel-manufacturing technology. POSCO is stepping up its efforts to elevate its technological expertise to take the lead in the market.

After the completion of the second-phase of the construction of the factory, POSCO will be able to produce 400,000 tons of Hyper NO annually, along with its existing steel mill in Gwangyang, South Jeolla Province. This is used to produce drive motor cores for some five million EVs, according to the company.