POSCO expands automotive steel capacity in Korea and US

POSCO is expanding its automotive steel production capacity by investing 480 billion won into a new galvanized steel production line (8CGL) at its Gwangyang Steelworks. Scheduled for completion in 2028, the facility will add 450,000 tons of annual capacity, bringing total production to 3.6 million tons. This investment aims to meet the rising demand for wide, high-quality steel sheets used in larger vehicles like SUVs and RVs, while also integrating AI and robotics to enhance production efficiency and safety.

Simultaneously, POSCO and Hyundai Steel have broken ground on the Hyundai Steel-POSCO Louisiana Electric Arc Furnace Steelworks (HPLS) in Donaldsonville, USA. This $5.8 billion joint venture, which includes participation from Hyundai Motor and Kia, aims to produce 2.7 million tons of steel annually starting in 2029. The facility is designed to reduce carbon emissions by approximately 70% compared to traditional blast furnaces by utilizing electric arc furnace technology.

These moves are part of a broader strategy by POSCO to expand its global crude steel production capacity to 10 million tons by 2031, with further investments planned for markets such as India and Indonesia. The collaboration between POSCO and Hyundai Steel seeks to secure a stable supply of low-carbon, high-value automotive steel for the North American market and beyond.