South Korean steelmaker POSCO has announced that its joint venture SNNC has completed the construction of its ferronickel plant No. 2, expanding its nickel capacity to 54,000 mt per year from 30,000 mt per year. The second phase of the nickel operations will deliver a stable nickel supply and secure cost competitiveness of stainless steel.
The new facility will not only contribute to the stimulation of the local economy, such as improving the competitiveness of related industries and stimulating job creation, but also contribute to improving the cost competitiveness of stainless steel through raising POSCO`s self-sufficiency in nickel by 80 percent.
According to POSCO, prior to the completion of construction work, Gwangyang Port was expanded with the addition of a quay exclusively for nickel ore in order to facilitate congestion-free operation.
SNNC was jointly established in May 2006 by POSCO (49 percent) and SMSP (51 percent), the largest nickel ore export company in New Caledonia. It produces and sells ferronickel, the main material of stainless steel and other by-products.