South Korean steel manufacturer POSCO is investing 480 billion Korean won ($359 million) in the construction of a new continuous galvanizing line for automotive steel at its steel plant in Gwangyang, as the company seeks to expand its range of high-quality steel products, according to media reports.
On September 8, the company held a groundbreaking ceremony for the project and plans to complete the construction of the new facility by 2028. The line will have an annual production capacity of 450,000 tons of hot-dip galvanized steel for car exterior panels.
POSCO's galvanized steel production capacity will reach 4.95 million тонн
The new facility will be POSCO's eighth continuous galvanizing (CGL) line at its steel mill in Gwangyang. The combined production capacity of the seven existing lines is 4.5 million tons per year, which means that the latest investments will increase the total production capacity of POSCO hot-dip galvanized steel to 4.95 million tons per year.
Hot-dip galvanized steel provides enhanced corrosion resistance and surface quality due to its zinc coating and is mainly used for the manufacture of automotive body panels and household appliances. The new line will focus, in particular, on the production of steel for exterior panels of cars.
POSCO President Lee Hee-geun described the project as a strategic investment aimed at increasing the company's competitiveness in the face of changes in the global steel industry, adding that the new automotive steel plant is expected to enhance POSCO's competitiveness both in terms of production costs and technology.
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