POSCO starts construction of electric arc furnace at Gwangyang plant

South Korean steelmaker POSCO has begun construction of a 2.5 million tonne per annum electric arc furnace (EAF) at its Gwangyang plant, Kallanish reports.

The EAF is expected to be completed by the end of 2025 and officially operational in 2026.

The total investment in the project is estimated at KRW 600 billion (over $451 million). When the planned production volume is reached, the company will be able to reduce carbon emissions by about 3.5 million tons per year compared to blast furnace production. In addition, the company intends to use the gases generated during the operation of the electric arc furnace to preheat scrap.

POSCO has ordered a Consteel continuous scrap feeding system and a Consterrer electromagnetic stirring system from Tenova in Italy.

POSCO plans to complete the commercialization of its HyREX technology by 2030 and switch its Pohang and Gwangyang steel mills to steel production based entirely on hydrogen reduction technology by 2050. The company is also stepping up its efforts to establish environmentally friendly commercial production systems abroad. The group plans to double its overseas steel production capacity by 2030 (from 5 million tons in 2022).

As GMK Center reported earlier, POSCO has expressed interest in negotiating potential cooperation with Montenegro’s state-owned energy company Elektroprivreda Crne Gore (EPCG). It concerns the steel branch of Zeljezara Niksic.

  • Global Market

Germany increased steel production by 8.9% y/y in 1H2026

In the first half of this year, Germany increased its steel production by 8.9% year-on-year…

Tuesday July 21, 2026
  • Global Market

Steel Dynamics increased its profit to $534 million in the second quarter

According to its second-quarter results, US steelmaker Steel Dynamics’ net revenue rose by a third…

Tuesday July 21, 2026
  • Global Market

China saw its stainless steel exports fall by 17.6% y/y in 1H2026

In the first half of 2026, China reduced its stainless steel exports by 17.6% year-on-year…

Tuesday July 21, 2026
  • Companies

Liberty Steel is placing staff at its Illinois plant on compulsory leave

The steel company Liberty Steel is temporarily placing employees at its wire rod production plant…

Tuesday July 21, 2026
  • Global Market

The global hot-rolled coil market remained stable in July against a backdrop of a seasonal lull

The global hot-rolled coil market showed mixed trends in July 2026. In the US, prices…

Tuesday July 21, 2026
  • Global Market

ArcelorMittal is raising prices for long products in Europe by €25 per tonne

ArcelorMittal, Europe’s largest steel producer, has announced a price increase for long products. The cost…

Tuesday July 21, 2026