POSCO introduces new hot rolling mill

South Korea's largest steelmaker POSCO has officially launched its new hot rolling mill at Gwangyang, South Jeolla. The company claims that the main facilities of the plant, including the furnaces, are designed and built using its own technology. The cooling system installed in the new furnace is estimated to help the company save about $ 5.67 million annually.

The new hot rolling facility has a total annual capacity of 3.3 million tonnes HRC. The company plans to export most of the products produced at the new mill for rolling at its own overseas subsidiaries. HRCs from 1.2 to 22 mm thick and 700-1.950 mm wide, produced at the plant, will mainly serve the growing demand for high quality steel in the automotive sector. The products are targeted at global car manufacturers including Volkswagen, Toyota, Ford and Nissan. To polish the surface of steel sheets, special belt grinders and polishing equipment will be used.

In recent years, Hyundai Steel has made a profound breakthrough in the Korean auto sheet market, increasing the region's potential and enabling production for KIA Motors, a subsidiary of the same Hyundai Motors Group. This resulted in Hyundai Steel gaining a huge market share. With the commissioning of the new plant, POSCO expects to regain some of its lost market share.

The new move is part of POSCO's strategy to restructure the company to improve profitability, focusing on its core business of flat steel products. The company also decided to sell its Seah Group division.