POSCO is investing 480 billion won to establish a new production facility for automotive hot-dip galvanized steel (CGL). This marks the first new CGL construction by POSCO since 2017.
On September 8, POSCO broke ground on the 8CGL (Continuous Galvanizing Line) at its Gwangyang steelworks, with an annual production capacity of 450,000 tons. The ceremony was attended by Gwangyang Mayor Park Seong-hyeon, POSCO President Lee Hee-keun, Strategic Investment Head Kim Kwang-moo, Purchasing Head Lee Yoo-kyung, Gwangyang Steelworks Head Ko Jae-yoon, and Technology Research Institute Head Eom Gyeong-geun.
During the ceremony, President Lee stated, "This investment is a strategic move to enhance our future competitiveness in the rapidly changing global steel ecosystem. By establishing specialized facilities for next-generation high-quality automotive steel, we aim to solidify POSCO's technological leadership amid global competition."
The newly constructed 8CGL is set to focus on producing hot-dip galvanized steel for automotive exteriors, with completion expected in 2028.
Hot-dip galvanized steel, coated with zinc, is known for its excellent corrosion resistance and aesthetic appeal, making it suitable for automotive exteriors and home appliances. As vehicles become more sophisticated, the demand for hot-dip galvanized steel, which offers superior paintability, corrosion resistance, and workability, continues to rise.
This will be POSCO's first new hot-dip galvanized steel plant in nine years. The company plans to invest approximately 480 billion won to expand its production of next-generation automotive steel in line with the trends of premiumization and larger vehicles in the automotive industry. With this investment, POSCO's hot-dip galvanized steel production capacity will increase to 4.95 million tons.
The 8CGL will play a key role in producing low-carbon automotive steel in conjunction with newly established electric furnaces. It will introduce ultra-high-temperature heat treatment facilities specialized for electric furnace steel, responding to the demand for low-carbon steel from global automakers, and will enhance the production system for wide automotive steel used in mid-to-large SUVs and recreational vehicles.
POSCO also aims to improve productivity and quality. The company plans to apply AI technology, leveraging over 30 years of operational know-how, to analyze material, process, and quality data in real-time, controlling equipment to reduce quality variations and defects while increasing production efficiency. Additionally, high-risk tasks will be managed using AI and robotics as part of its manufacturing AI transformation (AX).
Based on the 8CGL, POSCO intends to enhance quality and service levels, securing differentiated product competitiveness. This strategy aims to support customers' market responsiveness and stable production, positioning POSCO as a strategic partner in shaping the future of the mobility industry.
Meanwhile, POSCO is developing the Gwangyang steelworks as a hub for future mobility materials, focusing on high-value mobility products such as giga steel and high-efficiency non-oriented electrical steel (HyperNO) for electric vehicle drive motor cores.
* This article has been translated by AI.
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