POSCO Eyes Pohan’s Capacity Expansion by FINEX

POSCO, South Korean largest steel maker examines to utilize FINEX, a new direct reduction iron making equipment to be introduced in Pohan iron works with capacity of approximately 2 million tonnes per year, in order to expand the works’ output capacity. POSCO plans to replace 2 old blast furnaces in Pohan with FINEX facilities while eyeing refinement of 2 blast furnaces with addition of FINEX as no.3 iron making equipment, according to POSCO’s executive officer. POSCO continues to analyze capacity balance with domestic demand and overseas steel works’ construction projects.

Pohan’s no.1 blast furnace has capacity of 1 million tonnes per year. No.2 blast furnace’s capacity is 2 million tonnes per year. Both furnaces were constructed over 30 years ago. POSCO has planned to replace these furnaces with FINEX in order to keep domestic crude steel output capacity at around 40 million tonnes per year when domestic steel demand growth is expected to slow down. FINEX can adjust output volume flexibly.

Meanwhile, the firm has another plan to refine no.1 and no.2 blast furnaces to maximum 4 million tonnes per year and newly introduce FINEX facility. The firm will build up competitive power by larger production capacity by this plan. However, POSCO needs to seek steel supply targets if the firm expands Pohan’s capacity by 2 million tonnes per year.