POSCO is scheduled to complete the No.3 PGL of its Pohang Works by March 2012. According to the company, it will call the new facilities a CGL internally and externally, when completed.
PGL is the composite facilities that can produce hot-rolled galvanized steel sheets and pickled and oiled steel sheets at the same time, as it produces hot-rolled galvanized steel sheets that get through a pickling and oiling process.
Precisely speaking, the No.3 PGL is not a CGL, as it can produce pickled and oiled steel sheets, hot-rolled galvanized steel sheets and hot-rolled electrolytic galvanized steel sheets but cannot turn out any hot-dipped galvanized steel sheets.
The hot-rolled galvanized steel sheets that its No.3 PGL will produce are high corrosion resistant high-grade steel products that can replace hot-dipped galvanized steel sheets in use for construction works.
POSCO is known to have a plan to produce its hot-rolled galvanized steel sheets at its No.3 PGL, developing the new demand for the products that can replace the existing demand for hot-dipped galvanized steel sheets mainly in the overseas market.
Hot-rolled galvanized steel sheets have a merit that the production cost for the products is lower than the cost for hot-dipped galvanized steel sheets, as they are hot-rolled products. Utilizing such a strong point of hot-rolled galvanized steel sheets, POSCO plans to find new demand for the products.
POSCO said that it is not so meaningful to call the No.3 PGL a CGL, but the hot-rolled galvanized steel sheets that the No.3 PGL will produce are expected to be good enough to replace hot-dipped galvanized steel sheets with them in general use and therefore, what effect they can exert on the existing market will be a matter of interest among the related market participants.