POSCO opens new electrical steel plant in South Korea

South Korean steel giant POSCO said it has begun building a new $804 million plant to produce non-oriented electrical steel sheet in Gwangyang, South Jeolla province. The new plant, due to be completed in 2025, will be capable of producing 300,000 metric tons of such products per year.

The groundbreaking ceremony was attended by POSCO Vice Chairman Kim Hakdong and Gwangyang Deputy Mayor Kim Kyung-ho, among others.

POSCO announced that it will invest 1 trillion KRW ($804 million) sequentially to expand the production of non-oriented electrical steel plates in response to the growing demand for green steel for automobiles and household appliances.

At present, POSCO can produce 830,000 metric tons of electrical steel sheet per year, including 100,000 metric tons of non-oriented electrical steel sheet.

These products are used to drive motor cores in electric vehicles and home appliances where high efficiency is required. POSCO's annual electrical steel output will rise to approximately 1.13 million metric tons when the new plant is completed. At the new plant, the company will reduce the thickness of the product to 0.1 mm by introducing the latest advanced technologies and equipment. The thinner steel will allow the company to respond flexibly to custom orders from key customers such as Samsung and LG.

“Through this investment, POSCO will build the world's best electrical steel sheet production system and strengthen its position as a global supplier of green vehicles and high-quality home appliances,” said Kim Hak-dong, POSCO Vice Chairman.

The plant is expected to create 210,000 jobs during construction.