Gwangyang: South Korean steelmaker POSCO announced plans to invest 480 billion won (US$359 million) to construct an automotive steel plant, aiming to expand its high-end steel products business.
According to Yonhap News Agency, the new plant, scheduled for completion by 2028, will boast an annual production capacity of 450,000 tons of hot-dip galvanized steel specifically for automotive outer panels. This facility will mark POSCO's eighth continuous galvanizing line (CGL) at its integrated steel mill in Gwangyang, located 360 kilometers south of Seoul, augmenting its existing seven lines.
POSCO President Lee Hee-geun emphasized the strategic significance of this investment, stating, "This is a strategic investment aimed at strengthening our future competitiveness amid a rapidly changing global steel ecosystem. The automotive facility would help the company compete with its rivals in terms of manufacturing costs and technological prowess."
The current seven CGLs collectively yield an annual output capacity of 4.5 million tons. With the addition of the new line, POSCO's total annual capacity for hot-dip galvanized steel will rise to 4.95 million tons. This type of steel, characterized by zinc coating to enhance corrosion resistance and surface quality, is primarily utilized for automotive body panels and home appliances.