On April 22, POSCO announced that it had begun construction of a non-oriented electrical steel (NO) plant with an annual production capacity of 300,000 tons in Gwangyang to respond to the rapid growth of the eco-friendly car market and the demand for energy efficiency improvement in home appliances.
At the groundbreaking ceremony held at the Gwangyang Works on April 22, POSCO CEO and Vice Chairman Kim Hak-dong, Gwangyang Deputy Mayor Kim Kyung-ho, Hyundai Motor Company, Kia Motors, Samsung Electronics, LG Electronics, and other customers and officials attended the groundbreaking ceremony.
Vice Chairman Kim Hak-dong said, "Through this investment, POSCO will establish the world's best NO production system in both Pohang and Gwangyang and solidify its status as a global supplier leading the eco-friendly car and luxury home appliance markets."
He continued, “POSCO has achieved remarkable growth in both quantity and quality, including being selected as the world’s most competitive steelmaker for 12 consecutive years. We need to accelerate the development of products and solutions.”
As carbon neutrality emerges as a new world order and social interest in the environment increases, the demand for electrical steel sheets that can improve the energy efficiency of electronic devices continues to expand in domestic and overseas markets.
In particular, the demand for NO, a material for driving motors for eco-friendly vehicles, is rapidly increasing.
According to IHS Markit, a global market research company, the demand for NO for eco-friendly vehicles is expected to increase by an average of 20% per year from 320,000 tons in 2020 to 4 million tons in 2033.
From 2025, demand will outstrip supply, leading to a material shortage of 927,000 tons in 2030.
In November last year, POSCO decided to build a high-efficiency NO plant with an annual production capacity of 300,000 tons by sequentially investing about KRW 1 trillion in order to preemptively respond to the eco-friendly future material market.
Meanwhile, POSCO currently has an electrical steel sheet production capacity of 830,000 tons per year, including 100,000 tons of high-efficiency NO. When the construction is completed in 2025, the company will secure a total capacity of 1.13 million tons, including 400,000 tons of high-efficiency NO.
