Posco expands stainless output

With completion of construction of the 600,000 tonne/year Steel Making Plant III at Pohang Works on 30 April, Posco has become the world’s fifth largest stainless steel sheet producer. With the new facility, Posco also has the world’s largest unit plant in Pohang. Over the past two years, Posco has expanded stainless steel output so that the company now has a total capacity of 1,660,000 tonnes per year. Europe’s Arcelor and Germany’s TKS are the two companies that produce the most stainless steel sheet. This increase in capacity of stainless steel sheet production will allow Posco to secure a new driving force for growth. Last year, stainless products accounted for 16.3% of total sales. Posco estimates that by the end of the year, the sales of stainless steel will grow to 18% and increase to 20% next year, greatly contributing to management performance.
In addition, Posco can now self-supply 360,000 tonnes of hot-rolled stainless coil per annum, which once had to be imported. The company is capable of providing a steady supply of materials to Posco’s cold rolling mills in China, such as Zhangjiagang Pohang Stainless Steel Co. Ltd. As the automotive industry is moving up-market, Posco is planning to expand its supply of automotive materials including the 400 series of stainless steel, demand for which has recently increased in the automotive exhaust system sector.

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