South Korean steel maker Posco Holdings announced that it is investing KRW 480 billion (US$ 360 million) to increase its production capacity for premium automotive galvanized low-carbon steel, as the company looks to strengthen its position in its domestic next-generation mobility market.
The company began construction this week of its eighth continuous galvanizing production line (8CGL) at its Gwangyang Steelworks in South Jeolla province. The new plant is scheduled to become operational in 2028 with a production capacity of 450,000 metric tons of high-grade hot-dip galvanized steel sheets per year, to be used mainly for automotive body panels. The new facility will raise the company’s overall production capacity for galvanized steel to 4.95 million metric tons per year.
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Posco said its decision to expand production capacity was made in response to growing sales of high-end and larger vehicles, which is driving up demand for galvanized steel panels – which offer high corrosion resistance and allow for uniform coating.
The facility is being built near the company’s new electric arc furnace, within the Gwangyang Steelworks, and will integrate advanced artificial intelligence (AI) technologies that can analyse the material, process and quality data in real time and automatically adjust equipment settings to minimise defects and quality variations. AI-driven robots will also be used to support human workers in hazardous tasks.
Posco’s president, Lee Hee-geun, said in a statement: “This is a strategic investment to strengthen our competitiveness in the rapidly changing global steel market. We will solidify our leadership by leveraging our dedicated equipment that improves our price and technological advantages in next-generation, high-quality automotive steel.”
