South Korean steelmaker POSCO will invest KRW 480 billion ($359 million) to build a new continuous galvanizing line for automotive steel at its Gwangyang integrated steelworks, as the company seeks to strengthen its high-end steel product portfolio, according to media reports.
The company held a groundbreaking ceremony for the project on September 8 and plans to complete the new facility by 2028. The line will have an annual production capacity of 450,000 mt of hot-dip galvanized steel for automotive outer panels.
POSCO's galvanized steel capacity to reach 4.95 million mt
The new facility will become POSCO's eighth continuous galvanizing line (CGL) at its Gwangyang steelworks. The seven existing lines have a combined annual production capacity of 4.5 million mt, meaning the latest investment will increase POSCO's total hot-dip galvanized steel capacity to 4.95 million mt per year.
Hot-dip galvanized steel offers improved corrosion resistance and surface quality through zinc coating and is mainly used for automotive body panels and home appliances. The new line will focus specifically on steel for automotive outer panels.
POSCO president Lee Hee-geun described the project as a strategic investment aimed at strengthening the company's competitiveness amid changes in the global steel industry, adding that the new automotive steel facility is expected to improve POSCO's competitiveness in both manufacturing costs and technology.
