"POSCO Breaks Europe's Monopoly"... First Delivery of HIC Steel to Saudi Aramco Plant

[Financial News]  

POSCO announced on the 13th that it will supply HIC certified energy steel to Saudi state-owned oil company Aramco's 'Fadhili Gas Plant Expansion Project'. 
The Fadhili expansion project is a large-scale energy infrastructure expansion project by Aramco, the world's largest oil company, to increase the gas processing capacity of the existing plant to 1.6 times its current level.
The HIC steel delivered by POSCO this time is steel resistant to Hydrogen Induced Cracking and is used as material for energy pipes or pressure vessels for oil, gas, etc., used in harsh environments.
Energy steel is divided into plant and pipe sectors used for mining and producing energy, and this is the first time 'HIC Resistant Steel' is being delivered to the plant sector.
In particular, the plant HIC steel required by Aramco has been exclusively supplied by European steel companies due to its higher level of HIC testing and quality certification procedures than international standards. Currently, only nine steel companies, including POSCO, have received Aramco certification, and through this supply, POSCO can expand its technological prowess and market dominance in the high-value energy steel market.
Additionally, POSCO's HIC steel is processed into finished products through domestic pipe, pressure vessel, and fitting manufacturers, enhancing the competitiveness of the domestic plant industry. Initially, European companies were considered for pipe and pressure vessel manufacturers in the early stages of the Fadhili project, but with POSCO supplying the steel, the manufacturers were changed to domestic companies. It is evaluated that the technological competitiveness of the downstream industry has led to new supply opportunities for the domestic upstream industry. Currently, pipes are being manufactured by Hyundai Steel Pipe and Seah Steel, pressure vessels by Bumhan Mechatronics, and fittings by Taekwang.
POSCO is securing a competitive edge by developing new demand and expanding sales channels centered on high-value-added products in the global trade environment where protectionism and high tariff policies continue. Furthermore, it announced that it is taking the lead in the growth and competitiveness enhancement of domestic manufacturing by cooperating comprehensively with various customers. 

padet80@fnnews.com Park Shin-young Reporter