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Posco Celebrates Start of Construction for New Steelmaking, Plate Plants
08/04/2008 - Posco celebrates the start of construction for a new steelmaking plant at Pohang Steelworks and a 2-million-tonne-capacity steel plate plant at Gwangyang Steelworks.
Posco recently celebrated the start of construction of a new steelmaking plant at Pohang Steelworks and a 2-million-tonne-capacity steel plate plant at Gwangyang Steelworks. The new facilities will raise the company’s annual crude steel production to 40 million tonnes and its annual steel plate production capacity to 7 million tonnes.
The new steelmaking plant at Pohang Steelworks involves the closure of the existing 100-tonne converter at the No.1 Steelmaking plant and the construction of a new facility with a 300 tonne-scale converter. When the new steelmaking plant is completed, Posco’s crude steel production capacity will increase by approximately 2 million tonnes, from the current 15.6 million tonnes to 17.6 million tonnes.
Along with the new steelmaking plant, Posco will install a 2.35-million-tonne-capacity continuous caster for wire rods and a continuous caster that can mass produce 400-mm thick steel slabs. With the expected rise in crude steel due to those continuous casters, Posco plans to increase the production of hot-rolled steel, steel plate, billets, etc.
“In order to prepare for a new leap based on our 40 years of accomplishments, we are manufacturing this new steelmaking plant,” said Posco Chairman Ku-Taek Lee during the celebration for the start of construction. “And by installing the world’s first and largest-scale advanced continuous caster, the cost and quality competitiveness of Posco will be upgraded to the next level.”
The new steelmaking plant at Pohang Steelworks involves the closure of the existing 100-tonne converter at the No.1 Steelmaking plant and the construction of a new facility with a 300 tonne-scale converter. When the new steelmaking plant is completed, Posco’s crude steel production capacity will increase by approximately 2 million tonnes, from the current 15.6 million tonnes to 17.6 million tonnes.
Along with the new steelmaking plant, Posco will install a 2.35-million-tonne-capacity continuous caster for wire rods and a continuous caster that can mass produce 400-mm thick steel slabs. With the expected rise in crude steel due to those continuous casters, Posco plans to increase the production of hot-rolled steel, steel plate, billets, etc.
“In order to prepare for a new leap based on our 40 years of accomplishments, we are manufacturing this new steelmaking plant,” said Posco Chairman Ku-Taek Lee during the celebration for the start of construction. “And by installing the world’s first and largest-scale advanced continuous caster, the cost and quality competitiveness of Posco will be upgraded to the next level.”
In response to rapidly rising domestic demand for plate due to growth in the Korean shipbuilding & heavy industries, Posco has also commenced construction for the 2-million-tonne-capacity steel plate plant at Gwangyang Steelworks. Posco will also construct a 240-tonne-annual capacity steelmaking plant required to supply the steel plate plant.
When the steel plate plant is completed, Posco’s plate production will increase from 4.3 million tonnes in 2007 to 7.25 million tonnes in 2011. With the integration of preexisting 2 and 3 steel plates, the new facility will place Posco as the world’s largest producer of steel plates. The company said that when the new Gwangyang steel plate plant is completed, it will help to soothe the supply shortage suffered by Korean demanders such as shipbuilding or heavy industries and raising competitiveness.
When the new steel plate plant, new steelmaking plant in Pohang, third/fourth blast furnace in Gwangyang, and fourth blast furnace in Pohang all become available, Posco’s annual crude steel production will leap from 31 million tonnes in 2007 to 40 million tonnes by 2011, making it the second-largest in the world after Arcelor Mittal.
When the steel plate plant is completed, Posco’s plate production will increase from 4.3 million tonnes in 2007 to 7.25 million tonnes in 2011. With the integration of preexisting 2 and 3 steel plates, the new facility will place Posco as the world’s largest producer of steel plates. The company said that when the new Gwangyang steel plate plant is completed, it will help to soothe the supply shortage suffered by Korean demanders such as shipbuilding or heavy industries and raising competitiveness.
When the new steel plate plant, new steelmaking plant in Pohang, third/fourth blast furnace in Gwangyang, and fourth blast furnace in Pohang all become available, Posco’s annual crude steel production will leap from 31 million tonnes in 2007 to 40 million tonnes by 2011, making it the second-largest in the world after Arcelor Mittal.
Posco will invest a total of 3.2 trillion won for the steelmaking and plate facilities, comprising of 1.4 trillion won for the new steelmaking plant and 1.8 trillion won for the steel plate plant. Construction is expected to be completed in June and July, 2010, respectively. The investment budget for Posco this year is estimated to be 6.6 trillion won including the construction of the two factories.
The company also noted that the construction of the new steelmaking plant and steel plate plant, which will require one million and 1.2 million construction personnel respectively until 2010, will help to create new jobs and contribute to the economic activation in the Pohang & Gwangyang areas.
