South Korea: POSCO sets up 1-mn t ultra high-strength steel plant

South Korean steel giant POSCO has set up a 1 million tonnes per annum (mntpa) giga steel (ultra high-strength and lightweight steel sheets), in response to the future demand for such materials in the automobile industry, as per a report.

The plant will have a zero rolling machine (ZRM) that can produce 0.5-1.65mm thickness sheets and will produce a wide range of products not available in the market, it is learnt. Giga sheets can be cold rolled and hot rolled.

Korea's automobile industry has been increasingly focusing on eco-friendly vehicles in response to stringent environmental regulations. According to global market research firm HIS Markit, the volume of global giga steel is expected to grow at a CAGR of 13% from 6.7 million tonnes (mn t) in 2020 to 12.4 mn t by 2025.

As the need for in-vehicle battery installation and safety devices increases, light weight is emerging as a key issue in automobile manufacturing. POSCO has thus been investing Won 500 billion sequentially since 2017 to expand and build new giga steel units at its Gwangyang works.

POSCO'S giga steel has been used by major domestic and overseas automakers because of its characteristics of formability, feasibility and strength - which is treble that of existing aluminum materials.

POSCO has even undertaken joint research with auto companies for the development of next-generation steel for automobiles.