Posco and Zhongtai to build rare gas plant in South Jeolla

Industry

Published: 27 Dec. 2023, 16:23

Posco and Zhongtai to build rare gas plant in South Jeolla

Posco Chairman Choi Jeong-woo waves a flag celebrating the establishment of Posco Holdings. [POSCO]

Posco Holdings will build a rare gas plant for chipmaking in Gwangyang, South Jeolla, in a joint venture with Hangzhou-based Zhongtai Cryogenic Technology.

The Korean company said Wednesday that the joint venture will break ground on the facility, which will have an annual capacity of 130,000 normal cubic meters, in 2024. Production will begin at the end of 2025.

Posco will have a 75.1 percent stake in the factory, while Zhongtai will own the remainder. The exact size of the investment has not been declared.

Rare gases refer to neon, krypton and xenon, which are used in fields including chipmaking, medicine and space propulsion.

Posco Holdings said the plant's capacity will be enough to meet 52 percent of the domestic chipmaking industry's demand for rare gas.

The company said it will supply crude rare gases to the planned factory, while Zhongtai will take charge of the facility's equipment.

Posco Holdings has been producing crude neon since January and plans to expand to xenon and krypton in stages next year.

BY SARAH CHEA [chea.sarah@joongang.co.kr]