POSCO Establishes State-of-the-Art Hot-Dip Galvanized Steel Sheet Plant for Automotive Applications

Annual Capacity of 450,000 Tons, 8CGL Plant to Be Completed in 2028

KRW 480 Billion Investment to Address Premium Automotive Consumption Trends

POSCO is expanding its production capacity for premium automotive steel sheets to secure leadership in the future automotive market.

On September 8, POSCO broke ground on the 8CGL (Continuous Galvanizing Line) at the Gwangyang Steelworks, which will have an annual capacity of 450,000 tons. The groundbreaking ceremony was attended by Gwangyang Mayor Park Sunghyun, POSCO President Lee Heekeun, Head of Strategic Investment Kim Kwangmoo, Head of Purchasing Lee Yukyung, Gwangyang Steelworks Plant Manager Ko Jaeyoon, and Head of Technical Research Institute Eom Kyungkeun, among others.

POSCO broke ground on the 8CGL automotive hot-dip galvanized steel sheet plant at the Gwangyang Steelworks on the 8th. Photo by Gwangyang Steelworks

At the event, POSCO President Lee Heekeun stated, "This investment is a strategic move to strengthen our competitiveness in the rapidly changing global steel ecosystem. By establishing a POSCO-style specialized facility capable of producing next-generation high-quality automotive steel sheets, as well as enhancing our cost and technological competitiveness, we aim to further solidify POSCO's technological leadership in the global market."

The newly launched 8CGL is specialized in producing hot-dip galvanized steel sheets for automotive exterior panels and is scheduled for completion in 2028.

Hot-dip galvanized steel sheets are steel sheets coated with zinc on the surface, providing excellent corrosion resistance and a high-quality appearance, making them ideal for automotive exterior panels and home appliance materials. In line with the recent premium trend in vehicles, demand for hot-dip galvanized steel sheets with superior paintability, corrosion resistance, and formability for automotive exterior applications has been steadily increasing.

This is the first time in nine years that POSCO has established a new hot-dip galvanized steel sheet plant since 2017. To expand production of next-generation automotive steel sheets in response to the trend towards premium and large-sized vehicles, POSCO has decided to invest approximately KRW 480 billion in building the 8CGL. As a result of this investment, POSCO's hot-dip galvanized steel sheet production capacity will increase to 4.95 million tons.

The 8CGL will also be linked with the newly established electric furnace, serving as a major base for the production of low-carbon automotive steel sheets. By introducing ultra-high temperature heat treatment facilities specialized for electric furnace steel sheets, POSCO will meet the global automakers' demand for low-carbon steel and strengthen the production system for ultra-wide automotive steel sheets used in large and mid-sized SUVs, RVs, and similar vehicles.

POSCO will also boost productivity and quality competitiveness. By applying AI technology that incorporates more than 30 years of operational know-how, POSCO plans to analyze material, process, and quality data in real time and control its facilities accordingly, aiming to reduce quality variation and defects while increasing production efficiency. Furthermore, high-risk operations such as removing impurities or collecting samples from high-temperature molten zinc will be addressed through AI and robotics, promoting its manufacturing AX strategy.

Leveraging the 8CGL, POSCO plans to further enhance the quality and service levels, secure differentiated product competitiveness, support customers' market responsiveness and stable production, and open new horizons for the future mobility industry as a strategic partner for shared success.

Meanwhile, in July, POSCO Group Chairman Chang Inhwa stated that the company will strengthen its role as a leading materials company for Korea by pursuing a triple-core strategy focused on industry, strategy, and energy resources.

This content was produced with the assistance of AI translation services.