POSCO introduces second nickel furnace

POSCO SNNC, a leading ferronickel producer, has completed the construction of a second electric furnace that will help nearly double its annual pure nickel production capacity to 54,000 tonnes from the current 30,000 tonnes.

POSCO said it has invested approximately KRW 480.6 billion ($ 437.1 million) in the construction of a second facility in Gwangyang, Jeollanam-do to increase production of ferronickel, which is one of the main raw materials for the stainless steel manufacturing process. Kwon Oh Jung, Chairman of POSCO said that "with significant growth in production capacity, POSCO SNNC has gained an incomparably high edge over all other global nickel smelters."

SNNC will not only help boost New Caledonian industry, but also strengthen South Korea's national interests, becoming an important source of growth for POSCO's stainless products. Paul Nautine, President of the Northern Province of New Caledonia also joined the launch event and stated that “the ferronickel project was a shared achievement that would have been impossible without the trust and cooperation between POSCO, SNNC and the Nickel Mining Company of New Caledonia.”

The first electric furnace of the company with an annual capacity of 30,000 tons was built in 2008. SNNC is jointly owned by Korean steelmaker POSCO, the world's fourth largest steelmaker, and New Caledonian mining company SMSP. The joint venture, with 49 percent of POSCO and 51 percent of SMSP, was created to ensure a stable supply of nickel, which accounts for as much as 80 percent of stainless steel production.