Posco Unveils Korea’s Largest Electric Arc Furnace & High-Purity Rare Gas Plant, Advancing Low-Carbon Steel and Semiconductor Materials
Leading steelmaker Posco marked a significant milestone on Wednesday with the completion of South Korea’s largest electric arc furnace and the inauguration of a high-purity rare gas production facility. These strategic developments underscore Posco’s accelerated transition towards low-carbon steelmaking and its expansion into crucial semiconductor and advanced materials.
The company hosted a grand completion ceremony for its new electric arc furnace at its Gwangyang plant in South Jeolla Province. The event saw the attendance of prominent figures including Prime Minister Kim Min-seok, Posco Group Chairman Chang In-hwa, alongside various government and company officials, highlighting the national importance of these initiatives.
Representing an investment of approximately 600 billion won (equivalent to $400 million), this cutting-edge electric arc furnace boasts an impressive annual production capacity of 2.5 million metric tons. This achievement firmly establishes it as the largest facility of its kind within Korea, significantly bolstering domestic steel production capabilities.
Posco emphasizes that this project is a pivotal stride in its comprehensive decarbonization strategy. Unlike traditional steelmaking processes, which rely heavily on iron ore and coking coal, electric arc furnaces utilize recycled steel scrap, enabling a substantial reduction of carbon emissions by up to 75 percent. This move aligns with global environmental sustainability goals.
Furthermore, the steelmaker is actively developing an innovative molten iron blending technology, internally known as “haptang.” This advanced process combines molten iron derived from both electric arc and blast furnaces. The “haptang” technology is specifically engineered to lower overall emissions while rigorously maintaining the high-quality standards required for premium steel products, such as those used in the automotive and electrical industries. Posco aims to commence mass production leveraging this technology by 2030.
This new electric arc furnace is also anticipated to serve as a crucial transitional bridge towards Posco’s long-term vision of hydrogen-based steelmaking. The company’s ambitious roadmap includes commercializing its HyRex hydrogen-reduction steelmaking technology by 2030, beginning with a demonstration plant capable of producing 300,000 tons annually, before progressively transitioning to full hydrogen-based production by 2050.
“The commissioning of this electric arc furnace clearly demonstrates our unwavering commitment to tackling the global challenge of decarbonization and to fundamentally reshaping the future competitiveness and sustainability of the steel industry,” stated Chairman Chang In-hwa.
Concurrently, on the same day, Posco Air Solution, the group’s specialized industrial gas subsidiary, officially commenced operations at its high-purity rare gas plant in Gwangyang. This significant launch marks Posco’s strategic entry into the high-growth semiconductor and aerospace materials business sectors.
This state-of-the-art facility possesses the capacity to produce 130,000 normal cubic meters of essential rare gases annually, including xenon, krypton, and neon. According to Posco, this output is sufficient to fulfill approximately 52 percent of the domestic demand for these critical rare gases, which are indispensable in semiconductor manufacturing processes.
These high-ppurity gases are meticulously extracted from the oxygen plants at Posco’s integrated steelworks and then rigorously refined for specialized applications. Their uses span semiconductor lithography and etching processes, as well as various advanced applications within the aerospace and medical industries.
Posco asserts that the new rare gas plant will significantly bolster Korea’s supply-chain resilience by substantially reducing its reliance on imported rare gases. These gases are widely recognized as vital, critical materials for a multitude of advanced high-tech industries.
“The capability to produce and stably supply key materials for the semiconductor and aerospace industries using our proprietary technology holds immense strategic and national significance,” Chairman Chang emphasized.
Looking ahead, the company plans to further expand its presence in the specialty gases market. This expansion will leverage powerful synergies with its established steelmaking operations and advanced gas purification technologies, ultimately aiming to construct a broader, high-value industrial gas business portfolio.
