POSCO is launching South Korea’s largest electric arc furnace

POSCO has completed construction of South Korea’s largest electric arc furnace (EAF) at its steelworks in Gwangyang (South Jeolla Province). The new facility has an annual production capacity of 2.5 million tonnes and is a key element of the company’s strategy to transition to low-carbon production, according to The Korea Times.

Construction of this large-scale industrial facility began in February 2024. The project was the company’s response to stricter global environmental regulations and growing demand for low-emission products. Total investment in the construction amounted to around 600 billion won ($392.6 million), and a total of 270,000 people were involved in the project.

According to the corporation’s estimates, the use of scrap steel will enable a reduction in carbon emissions of up to 75 per cent compared with the company’s average figures for traditional blast furnace production between 2017 and 2019.

POSCO has now identified premium steel produced in electric arc furnaces as one of its eight strategic priorities. To accelerate its commercialisation, a dedicated task force has already been set up, bringing together the research and development (R&D), production and sales departments. The company is expected to launch full-scale commercial production of high-tech products, including automotive sheet and electrical steel, by 2030.

It should be noted that South Korea has approved the site for POSCO’s hydrogen-based DRI plant. The project in Pohang involves the launch of a HyREX pilot plant with a capacity of 300,000 tonnes per year by 2028.