Posco to invest $92B in steelmaking, future growth businesses

Industry

Published: 03 Jul. 2023, 17:57 Updated: 03 Jul. 2023, 18:48

Posco to invest $92B in steelmaking, future growth businesses

Posco Group Chairman Choi Jeong-woo, sixth from left, North Gyeongsang Governor Lee Cheol-woo, fifth from left, and Pohang Mayor Lee Kang-deok, fourth from left, pose for a photo during a celebratory event commemorating the establishment of Posco's first steel mill in Pohang, North Gyeongsang, on Monday. [POSCO]

Posco will invest 121 trillion won ($92.4 billion) by 2030 in steelmaking as well as its future growth businesses such as hydrogen and electric vehicle (EV) battery materials, the steelmaker said Monday.

Of the 121 trillion won budget, 73 trillion won will be allocated for businesses in Korea.

The announcement was made during a celebratory event commemorating the 50th anniversary of the company building the first unit of its steel mill in Pohang, North Gyeongsang.

The event took place at Posco’s headquarters in the southeastern port city of Pohang on Monday with Posco Group Chairman Choi Jeong-woo, Posco Vice Chairman Kim Hak-dong, North Gyeongsang Governor Lee Cheol-woo and Pohang City Mayor Lee Kang-deok in attendance.

“The establishment of the first unit of Pohang steel mill marked a historical turning point for Korea’s economic growth,” said Choi during his remarks.

“With these latest investments, Posco will further consolidate our leadership in our key businesses by securing future technologies and growing markets, and pave the way towards a sustainable future with eco-friendly materials,” Choi said.

The chairman highlighted that “by pouring 73 trillion won, which is over 60 percent of the total investment, into local operations based in Pohang, Gwangyang and more, we will contribute to balanced regional development and job creation.”

Posco Research Institute estimated that the latest investments in the local industry will generate 121 trillion won in annual production and create 330,000 jobs.

Posco companies have recently been revving up investments in EV battery material manufacturing and hydrogen production.

Posco Future M, recently renamed from Posco Chemical, aims to boost its cathode capacity to 340,000 tons in 2025 and 610,000 tons in 2030. The company currently has a 90,000-ton facility in Gwangyang, South Jeolla, a 10,000-ton facility in Gumi, North Gyeongsang, and a 5,000-ton facility in China.

Posco also aims to convert its production facilities for hydrogen reduction steelmaking — which produces iron using hydrogen instead of fossil fuels — and achieve a hydrogen production capacity of 7 million tons by 2050.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]