POSCO to Start Mg Refinery in 2012-14

POSCO will enter into magnesium refinery business in 2012-14. The firm produces magnesium ingot at the own equipment as material for existing magnesium flat rolled products business to improve the cost competitiveness and stable supply ability.

The firm announced the attempt for magnesium refinery in special speech on October 1 at International Magnesium Exhibition In Tsukuba 2009 in Ibaraki. The firm tries to expand the business from steel to materials including magnesium and nonferrous metals.

The firm expanded the magnesium business unit to around 70 employees with new engineering, quality and technology and research and development teams in April while the unit was marketing team with 10 employees and the plant with 33 employees before. The firm tries to improve the technology and quality for the flat products by 2011 and develops market for wide flat products and enforces magnesium refinery in 2012-14.

The firm now purchases magnesium ingot from China but the imported ingot is unstable for price and delivery. With own refinery, the firm improves the cost competitiveness and stable supply.

The firm plans to expand the magnesium flat production capacity to annual 150,000 tonnes in 2015, which is 50 times of current capacity, to develop automobile application. The firm also develops applications for computer and semiconductor by expanding the grade variation.