POSCO Steps Up Automotive Steel Investment to Capture Next-Generation Mobility Market

POSCO is bolstering its investment in high-end automotive steel to strengthen its position in the rapidly evolving global mobility market. On Tuesday, the Korean steelmaker announced the commencement of construction on its eighth continuous galvanizing line (8CGL) at its Gwangyang Works in South Korea. The facility, slated for completion in 2028, will boast an annual production capacity of 450,000 metric tons and will be a key component of POSCO's strategy to meet the growing demand for premium automotive steel.

The new 8CGL will be specially designed to produce hot-dip galvanized steel, primarily used in automotive exterior panels. This material offers exceptional corrosion resistance, superior surface finish, and good formability, making it ideal for high-quality vehicle body panels. As automakers expand their lineups of large SUVs and recreational vehicles while focusing on exterior quality, durability, and design, demand for premium galvanized automotive steel is on the rise.

With the completion of the 8CGL, POSCO's total annual production capacity for hot-dip galvanized steel is expected to reach 4.95 million tons, up from its current level. This represents the company's first new hot-dip galvanizing facility since 2017 and signifies a strategic move to upgrade its automotive steel portfolio. POSCO's CEO, Lee Hee-geun, emphasized the investment as a strategic move to solidify the company's technological leadership in the global market.

The 8CGL will be integrated with a newly built electric furnace, which will enable the facility to produce lower-carbon automotive steel. This move aligns with the automotive industry's shift towards more sustainable manufacturing practices. Additionally, the facility will leverage artificial intelligence to improve productivity, quality, and workplace safety. POSCO plans to apply AI technology to analyze material, process, and quality data in real-time, controlling production equipment and reducing defects.

The investment is part of POSCO's broader strategy to transform Gwangyang Works into a specialized production hub for next-generation mobility materials. The company aims to build a more competitive automotive steel business that can meet the industry's demands for premium quality, wider product offerings, and lower-carbon materials. By strengthening its partnerships with global automakers, POSCO seeks to support their efforts in responding to the rapidly changing mobility landscape.