Posco said Tuesday it will invest 480 billion won ($357 million) to expand production capacity for premium automotive galvanized iron and secure a competitive edge in the next-generation mobility market.
Earlier in the day, the Korean steelmaker broke ground on the eight continuous galvanizing iron production line (8CGL) at its Gwangyang Steelworks in South Jeolla Province.
Capable of producing 450,000 metric tons annually, the line will focus on manufacturing high-grade hot-dip galvanized steel sheets designed for automotive exterior panels. Scheduled for completion in 2028, this marks Posco’s first dedicated galvanizing iron line since 2017. It will boost its total annual production capacity of galvanized iron to 4.95 million tons.
Key executives and local officials attended the groundbreaking ceremony at the Gwangyang plant, including Posco President Lee Hee-geun; Kim Kwang-moo, head of the strategic investment division at Posco; Ko Jae-yoon, head of Gwangyang Steelworks; and Gwangyang City Mayor Park Sung-hyeon.
Posco said the decision comes amid growing demand for high-end and larger vehicles, which in turn increases orders for galvanized steel known for its uniform coating, high corrosion resistance and exceptional formability.
Operating alongside the newly constructed electric arc furnace at the Gwangyang plant, the 8CGL will serve as a key hub for low-carbon automotive steel manufacturing.
The facility will integrate advanced artificial intelligence technology built on nearly three decades of operational expertise. The system will analyze material, process and quality data in real time to automatically adjust equipment settings, minimizing defects and quality variations. Posco also plans to deploy robotics and AI assistance to support human workers in hazardous tasks.
“This is a strategic investment to strengthen our competitiveness in the rapidly changing global steel market,” Lee stated. “We will solidify our leadership by leveraging our dedicated equipment that improves our price and technological advantages in next-generation, high-quality automotive steel.”
The move aligns with Posco Group Chairman Chang In-hwa’s vision, who recently outlined plans for rigorous cost innovation and an accelerated transition toward low-carbon steelmaking.
Posco has designated eight core strategic products to lead this transformation — including “Giga Steel,” ultra-high-strength advanced steel, and “Hyper NO,” a high-efficiency, non-oriented electrical steel used in electric vehicle drive motor cores — with Gwangyang Steelworks serving as the flagship production base for these next-generation mobility materials.
hyejin2@heraldcorp.com
