POSCO Expands Production of Premium Steel Sheets

NEWSROOM

POSCO is expanding its production of advanced high strength steel (AHSS) for carmakers around the world. The expansion will boost the local economy by providing jobs for small and medium businesses.

POSCO is expanding its production of specialized premium automotive steel sheets. Construction of the 7CGL (Continuous Galvanizing Line) started on September 3 at Gwangyang Steelworks, strengthening its position as the second largest auto sheet manufacturer in the world. With an annual production capacity of 500,000 tons, and a total investment of 255.4 billion KRW, the 7CGL is a specialized production line exclusively for AHSS (Advanced High Strength Steel) and is expected to be completed in June 2017. AHSS is an advanced high strength steel which is ten percent lighter, yet twice as strong as ordinary steel sheets. By using AHSS, automakers can decrease the amount of steel sheets used in car manufacturing without compromising strength, so the demand for AHSS is constantly growing. AHSS produced by Gwangyang Steelworks’ 7CGL will be supplied to finished carmakers around the world, such as Volkswagen, GM, Renault Nissan and Toyota.

Revitalizing the Local Economy

POSCO produced over 8.5 million tons of auto sheets last year and is expecting to increase production to 10 million tons by 2017 with the expansion of its 7CGL production line in Gwangyang and Thailand, solidifying its position as the second largest steelmaker in the world.

For the construction of the Gwangyang 7CGL, POSCO plans to perform all work in-house, using its own engineering efforts without hiring large-scale engineering companies. By doing so, POSCO expects to reduce huge investment costs by applying POSCO’s own unique technologies, including annealing furnace compactification, internal oxidation technology and more. Furthermore, under difficult steelmaking situation internally and externally, construction of the Gwangyang 7CGL is expected to contribute to the revitalization of the local economy by creating more than 160,000 jobs per year and placing orders to small and medium-sized equipment suppliers and construction companies based in Gwangyang and Jeolladamdo.

Over 130 interested parties, including Young-hoon Lee, Head of Finance and Investment Division of POSCO, Tong-il An, General Superintendent of Gwangyang Works, the governor of Jeollanamdo and the mayor of Gwangyang City, attended the ground breaking ceremony.

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  • Wow! Great thgnkini! JK

    • helloposco

      Hello sir, thank you for your compliment. Please keep an eye on us going forward as we will continue to share more interesting stories.