POSCO Completes Construction of Electrical Steel Sheet Plant in Gwangyang

POSCO, the South Korean steel giant, has successfully concluded the initial phase of constructing its cutting-edge, eco-friendly non-oriented electrical steel sheet plant, known as Hyper No, at Gwangyang Steel Works. This strategic development aims to cater to the increasing demand emerging from the electric vehicle (EV) and high-end appliance sectors.

Commencing in April 2022, the construction of the Hyper No plant involved a substantial investment of KRW 1 trillion. Once fully operational, the plant is designed to boast a production capacity of 300,000 metric tons per year. In its current state after the first phase, the plant can produce 150,000 metric tons of Hyper No steel annually, with a thickness capacity reaching up to 0.15 mm. The subsequent completion of the second phase will enable POSCO to achieve the targeted production of 300,000 metric tons of Hyper No steel annually. It's worth noting that POSCO already operates another plant with a capacity of 100,000 metric tons per year at Pohang Steel Works. The company aims to finalize the second phase by the year's end, ensuring it can cater to its customers at full capacity.

The significance of high-efficiency non-oriented electrical steel sheet, such as Hyper No, lies in its pivotal role in minimizing energy loss in motors, directly impacting fuel consumption. This makes it a critical component in the manufacturing processes of motors utilized in various applications, particularly in the automotive and appliance industries.

The successful completion of the first phase underscores POSCO's commitment to advancing its capabilities in the production of non-oriented electrical steel sheets. Hyper No's environmentally friendly and high-efficiency characteristics position it favorably in industries experiencing a surge in demand for electric vehicles and premium appliances. The strategic location of the Gwangyang Steel Works and the scale of production capacity planned for the Hyper No plant reflect POSCO's forward-looking approach to stay abreast of market trends.

The ongoing investments and expansions align with POSCO's broader vision to play a significant role in the global steel industry. The company's willingness to explore new opportunities, such as potentially establishing a plant in North America, demonstrates its proactive stance in responding to evolving market dynamics. POSCO's ambitious target of reaching 1 million metric tons of global production by 2030 underscores its commitment to sustainable growth and adapting to the changing landscape of the steel sector.

As the second phase of the Hyper No plant nears completion and POSCO explores opportunities beyond its current operations, the company is poised to contribute substantially to the advancement of electrical steel sheet manufacturing. By addressing the demand for high-efficiency products in critical industries like electric vehicles, POSCO positions itself as a key player in shaping the future of steel production and supporting the broader transition toward sustainable and energy-efficient technologies.