POSCO to Export FINEX Steelmaking Technology Overseas for First Time
Thus POSCO's FINEX method, its self-developed next-generation steelmaking technology, will be exported overseas for the first time.
Chongqing Iron and Steel was established in 1893 and is a state-run company with the city of Chongqing holding 100% of shares. It has 22 subsidiaries and an annual steelmaking capacity of 6.5 million tons.
Chongqing has marked higher economic growth rates than China’s average over the past few years and is expected to continue to grow at double-digit rates, leading to high steel demand compared to other regions.
Per the MOA, POSCO and Chongqing Iron and Steel will each invest in 50% of shares equally to construct the 3 million ton scale FINEX integrated steel works. This is the result of a feasibility review that was carried out for approximately two years since the signing of a FINEX collaboration MOU in July 2011. The main agreement is expected to be signed by the end of next year after ratification by the government of China and approval of technology export by the government of Korea.
FINEX was successfully commercialized at a 1.5 million ton scale by POSCO in 2007 after 15 years of research beginning in 1992. Currently, a 2 million ton scale new FINEX plant is under construction within the Pohang Steel Works. The technology has changed the general steel industry’s paradigm where melted iron is produced in the furnace, making its mark in world steelmaking history, POSCO says.
FINEX is economical as it reduces investment costs compared to general furnaces by removing the coke and sintering processes which preliminarily process the materials in the existing furnace, and is environmentally friendly by reducing pollutants such as sulfuric oxides (SOx) by 97%, nitric oxides by 99%, and fugitive dust by 72% compared to general furnaces. More than 80% of the iron ore can be used in powder form of less than 8mm in diameter which is more than 20% lower in cost, reducing production costs as well.
In addition to the MOA, POSCO and Chongqing Iron and Steel signed am MOU to review cooperation in an automobile cold rolled project in response to the fast-growing automobile industry in the Chongqing region.