- Building the system for producing 160,000 tons of highest-grade NO a year
- Expecting to sell more materials for premium consumer electronics and electric vehicle motors
POSCO firmly established the system for producing
the highest-grade non-oriented silicon steel, the core material for environmentally-friendly
electric vehicle drive motors and world premium consumer electronics.
On February 20, POSCO held a ceremony to celebrate
the completion of the non-oriented silicon steel production capacity expansion
project at Pohang Steel Works. POSCO CEO Ohjoon Kwon, and 100 officials from
POSCO affiliates such as POSCO E&C and POSCO ICT, equipment suppliers and
clients attended the ceremony.
▶ POSCO held the completion ceremony for the highest-grade non-oriented silicon steel capacity enhancement project at Pohang Steel Works on February 20. From left, Seong Yu, VP of POSCO, pressing the button, Young-hoon Lee, CEO of POSCO Chemtech, Dae-woo Lee, employee representative of the labor-management committee, POSCO CEO Ohjoon Kwon, Won-ho Choi, Chairman of Taehwa, In-hwa Jang, VP of Taehwa, and Tong-il An, General Manager of Pohang Steel Works.
As of now, POSCO's top-grade Non-Oriented silicon
steel (Hyper NO) production has been increased from 80,000 to 160,000 tons,
equivalent to a quantity that can be supplied for approximately 2.6 million
electric vehicle drive motor cores.
Electrical steel sheets are made by adding 1~4% silicon
to iron. They possess excellent electromagnetic properties, and are divided
into Grain Oriented silicon steel (GO) and Non-Oriented silicon steel (NO) depending
on the crystallographic direction of the metal. They consist of high-grade steel
material. GO is used as a material for the core of stators like transformers,
whereas NO is used as a material for rotors like motors and generators as it
has almost the same electromagnetic properties in all directions.
This capacity expansion project increased the production
of the top-grade NO, used as the core of high-efficiency premium consumer electronics
and electric vehicles. It is an environmentally-friendly material that follows
the trends of the times, e.g. energy saving and reduction of CO2 emissions.
In a bid to quickly secure future competiveness
in response to the expansion of the high-efficiency premium consumer electronics
and electric vehicle market, POSCO has conducted improvement projects since
2015 over a period of 2 years and 9 months, such as improvement of APL (Annealing
& Pickling Line) and ACL (Annealing & Coating Line), and construction
of ZRM (Sendzimir Reverse Mill), capable of producing 0.15mm steel sheets. In
particular, the 0.15mm electrical steel sheets, produced as a result of this improvement
project, will contribute to minimizing power loss of customers' end products.
▶ On February 20, POSCO CEO Ohjoon Kwon wrote 'Realizing World-best Technology and Best Competitiveness in Hyper NO' at the completion ceremony for the highest-quality non-oriented silicon steel capacity enhancement project, and encouraged employees.
As production of environmentally-friendly cars
and high-efficiency consumer electronics has been increasing recently due to
global environmental issues, it seems that the demand for top-grade electrical steel sheets, the materials for core parts, will rise from last year's 800,000
tons to more than 1 million tons in 2020. POSCO expects to increase its market
share by developing customized products for individual electric vehicle manufacturers
and providing services, and see its profitability improve due to the increased
sales of top-grade NO, thanks to its supply of premium-grade materials for high-efficiency
motors as the quality of consumer electronics is improving at home and abroad.
Meanwhile, this project, which required investment
of KRW 124.1 billion in total, greatly contributed to invigorating the local
economy as a total of 200,000 construction workers were employed during the
construction period. Also, as the construction period was reduced by 3 months,
and equipment was recycled and the design was optimized, the total investment
cost was reduced by 6.5%.
POSCO CEO Ohjoon Kwon said, "The completion
of this project has now enabled us to proactively meet market needs due to the
increasing demands for environmentally-friendly cars and high-efficiency premium
consumer electronics. I sincerely hope that you will make efforts to deliver
top-quality electrical steel sheets to customers by stably operating the system
and working hard to develop technologies so that we can lead the premium market
with quality and technology."
As it successfully completed this high-grade material
capacity expansion project, installed additional equipment, and thus built a
stable production system, POSCO expects to proactively respond to the domestic
and overseas demands for domestic non-oriented silicon steel.