It broke ground on the continuous galvanizing line (CGL) facility at its steel mill in Gwangyang, South Jeolla Province, its first new CGL in nine years.
Scheduled for completion in 2028, the new facility will have an annual production capacity of 450,000 tons of hot-dip galvanized steel sheet for automotive exterior panels. Once completed, the facility will bring the steelmaker's total annual capacity for hot-dip galvanized steel to 4.95 million tons including its seven existing lines.
Hot-dip galvanized steel is coated with zinc to improve its resistance to corrosion and enhance surface quality. It is widely used for automotive body panels and home appliances, with demand growing as automakers produce more premium and larger vehicles.
"Investment in the new facility will help strengthen the company's competitiveness as the global steel industry changes rapidly," POSCO president Lee Hee-geun said. He added that the facility will focus on making next-generation automotive steel while improving costs and technology.
POSCO also plans to use artificial intelligence (AI) and robots to reduce defects, monitor quality, improve production efficiency and enhance workplace safety.
AJP Takeaways
- POSCO will invest 480 billion won (US$357 million) to build a new continuous galvanizing line (CGL) facility in Gwangyang, South Jeolla Province, marking the steelmaker's first new CGL in nine years.
- The new facility, scheduled for completion in 2028, will produce 450,000 tons of hot-dip galvanized automotive steel annually, increasing POSCO's total annual capacity to 4.95 million tons, including its seven existing lines.
- POSCO will use artificial intelligence (AI) and robots at the new facility to improve production efficiency, quality and workplace safety, while reducing defects and strengthening its competitiveness in high-end automotive steel.
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