South Korean steelmaker Pohang Iron and Steel Co. (POSCO) has announced that it has begun construction of an electric arc furnace with an annual capacity of 2.5 million mt at its Gwangyang Works. The company will invest about KRW 600 billion ($451.94 million) in building the furnace, as SteelOrbis previously reported.
The furnace is scheduled to be completed by the end of 2025 and begin operation in 2026.
POSCO stated that the new electric arc furnace will reduce annual carbon emissions by approximately 3.5 million mt compared with the company’s blast furnace operations. In addition, the construction of the furnace is expected to contribute to job creation and revitalization of the local economy in the Gwangyang area.
The company plans to achieve carbon neutrality by 2050.