POSCO to Invest 480 Billion Won in Gwangyang, Expand Automotive Steel Sheet Production Capacity

[Financial News] POSCO will invest approximately 480 billion won to expand its production capacity for high-end automotive steel sheets.
POSCO announced on the 8th that it had begun construction at Gwangyang Steel Works of 8CGL, a hot-dip galvanized steel sheet plant for automotive exterior panels with an annual capacity of 450,000 metric tons. The facility is scheduled for completion in 2028.   
Hot-dip galvanized steel sheet is steel sheet coated with zinc on its surface. Demand for hot-dip galvanized steel sheet, which offers excellent paintability, corrosion resistance and formability, has continued to grow in the automotive exterior panel sector.
This is the first time in nine years, since 2017, that POSCO has built a new hot-dip galvanized steel sheet plant. The investment will increase POSCO’s hot-dip galvanized steel sheet production capacity to 4.95 million metric tons.
Linked to a newly built electric arc furnace, 8CGL will serve as a key hub for producing lower-carbon automotive steel sheets. The facility will introduce ultra-high-temperature heat-treatment equipment specialized for electric arc furnace steel to meet global automakers’ demand for low-carbon steel. It will also strengthen POSCO’s production system for wide automotive steel sheets used in the exterior panels of medium- and large-sized vehicles.
POSCO also plans to improve productivity and quality competitiveness. By applying artificial intelligence (AI), the company will analyze material, process and quality data in real time and control equipment to reduce quality variations and defects while increasing production efficiency.
The groundbreaking ceremony was attended by Gwangyang-si Mayor Park Seong-hyeon, along with POSCO President Heegeun Lee, Kim Gwang-mu, head of the Strategic Investment Division, Lee Yu-gyeong, head of the Procurement Division, Ko Jae-yoon, head of Gwangyang Steel Works, and Eom Gyeong-geun, head of the Research Institute of Industrial Science and Technology.
Heegeun Lee said, "We will build POSCO-style specialized facilities for automotive steel sheets that enable the production of next-generation high-quality automotive steel and raise cost and technological competitiveness to the next level."

[email protected] Kim Mi-hee Reporter