Posco is strategically accelerating the expansion of its **industrial gas business**, positioning it as a key future growth engine. The company aims to meet the escalating demand from vital advanced industries, including **semiconductors**, aerospace, and cutting-edge **secondary batteries**.
The rapid growth of these high-tech sectors has significantly amplified the strategic importance of **industrial gases**. Crucially, ensuring a stable and secure supply of **rare gases** has become a critical factor for national competitiveness, especially amidst ongoing global supply chain disruptions and geopolitical uncertainties.
Recent events, notably Russia’s invasion of Ukraine in February 2022, starkly highlighted the vulnerabilities within global supply chains. Disruptions in **neon production** profoundly impacted worldwide **semiconductor manufacturing**, underscoring the inherent risks of over-reliance on limited supply sources. This situation has reinforced the urgent need for robust domestic production capabilities and diversified sourcing strategies for critical industrial gases.
In a pioneering move to address these challenges, Posco is establishing a comprehensive **rare gas value chain** in Gwangyang, South Jeolla Province. This initiative is Korea’s sole endeavor of its kind, signifying a strategic pivot for Posco beyond its traditional steel business, toward becoming a crucial supplier of essential materials for **high-tech industries**.
Posco has systematically developed its **industrial gas business** since 2021, marking significant milestones. In 2022, the company initiated Korea’s first-ever production of crude **rare gas**, specifically neon. This was followed by the reorganization of its industrial gas division into an independent business unit. By 2025, Posco further solidified its presence by expanding into the specialized **specialty gas segment**.
Within the **general gas segment**, Posco leverages over five decades of operational expertise, operating 20 advanced air separation units that reliably supply essential gases like oxygen, nitrogen, and argon to its steelworks. Now, the company is actively extending its supply capabilities beyond steel production. This includes the construction of new state-of-the-art facilities within the Yeongil Bay Industrial Complex in Pohang, specifically designed to serve the growing needs of **battery manufacturers**.
In the crucial area of **rare gases**, Posco established Posco Zhongtai Air Solution in 2024 to secure a strategic foothold in the high-purity production of **neon, xenon, and krypton**. With the anticipated completion of its Gwangyang plant later this year, Posco is poised to dramatically reduce Korea’s historical dependence on imported rare gases, boosting national self-sufficiency.
Furthermore, Posco is aggressively expanding its footprint in **specialty gases** to strengthen its critical position in the supply chain for **semiconductor materials**. This expansion includes the full acquisition of Chemgas Korea and a strategic investment in Pumtech. Posco is also actively collaborating with the Research Institute of Industrial Science & Technology (RIST) to innovate and develop eco-friendly specialty gases and next-generation advanced materials.
Through its integrated expansion across **general, rare, and specialty gases**, Posco is building a robust and comprehensive **industrial gas value chain**. By synergistically leveraging decades of expertise in steelmaking and large-scale plant operations, the company is committed to ensuring a stable and reliable supply of key materials for advanced industries, thereby significantly strengthening its competitiveness and resilience within the global supply chain.
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