Gwangyang: South Korean steelmaker POSCO revealed plans on Tuesday to invest 480 billion won (US$359 million) in constructing an automotive steel plant, aiming to bolster its high-end steel products business. The new plant is part of POSCO's strategic initiative to enhance its competitiveness in the global steel market.
According to Yonhap News Agency, POSCO intends to complete the construction of the plant by 2028. The facility will boast an annual production capacity of 450,000 tons of hot-dip galvanized steel specifically for automotive outer panels. This development will mark the establishment of POSCO's eighth continuous galvanizing line (CGL) at its integrated steel mill located in Gwangyang, approximately 360 kilometers south of Seoul, complementing the seven existing lines.
In a press release, POSCO President Lee Hee-geun emphasized the strategic nature of this investment, highlighting its role in enhancing the company's future competitiveness amidst a swiftly evolving global steel industry. The new automotive facility is expected to enable POSCO to better compete with its rivals by optimizing manufacturing costs and advancing technological capabilities.
Currently, POSCO's seven existing CGLs yield a combined annual output capacity of 4.5 million tons. The addition of the new line will elevate POSCO's total annual production capacity for hot-dip galvanized steel to 4.95 million tons. Hot-dip galvanized steel, which undergoes a zinc coating process to enhance corrosion resistance and surface quality, is primarily utilized in automotive body panels and home appliances.