Posco said Tuesday it is accelerating expansion of its industrial gas business as a future growth engine, aiming to capture rising demand from advanced industries such as semiconductors, aerospace and secondary batteries.
As these sectors expand, the strategic importance of industrial gases is growing. In particular, securing stable supplies of rare gases has emerged as a key factor in national competitiveness, amid persistent global supply chain disruptions and geopolitical risks.
The vulnerability of supply chains has been underscored by Russia's invasion of Ukraine in February 2022, with disruptions in neon production hitting global semiconductor manufacturing, highlighting the risks of overreliance on limited supply sources and reinforcing the need for domestic production and diversified sourcing.
In response, Posco is building a full rare gas value chain in Gwangyang, South Jeolla Province — the only such initiative in Korea — marking a strategic shift beyond steel toward supplying critical materials for high-tech industries.
The company has been systematically developing its industrial gas business since 2021. In 2022, it began Korea's first production of crude rare gas — neon — and reorganized its industrial gas division into an independent business unit. In 2025, it expanded further into the specialty gas segment.
In the general gas segment, Posco operates 20 air separation units that supply oxygen, nitrogen and argon to its steelworks, backed by more than five decades of operational expertise. The company is now extending supply beyond steel, including constructing new facilities in the Yeongil Bay Industrial Complex in Pohang to serve battery manufacturers.
In rare gases, Posco established Posco Zhongtai Air Solution in 2024 to secure a foothold in high-purity production of neon, xenon and krypton. Once its Gwangyang plant is completed this year, the company is expected to significantly reduce Korea's dependence on imports.
Posco is also expanding into specialty gases to strengthen its position in semiconductor materials. It has fully acquired Chemgas Korea and secured an investment in Pumtech, while collaborating with the Research Institute of Industrial Science & Technology to develop eco-friendly specialty gases and next-generation materials.
By expanding across general, rare and specialty gases, Posco is building a comprehensive industrial gas value chain. Leveraging decades of expertise in steelmaking and plant operations, the company aims to ensure stable supply of key materials for advanced industries while strengthening its competitiveness in the global supply chain.
jwjeon7625@heraldcorp.com
