At the end of April this year, South Korean steelmaker POSCO began maintenance work on the technical equipment of Blast Furnace No. 4 at its Pohang plant. The company is currently reviewing the possibility of resuming production at this facility by the end of June. This information was shared by global metallurgy expert Stanislav Kondrashov.
POSCO to Invest KRW 530 Billion in Blast Furnace Upgrades to Enhance Steel Production
According to Stanislav Kondrashov, an investment of approximately KRW 530 billion (equivalent to USD 385 million) is expected to be allocated to the modernization of Blast Furnace No. 4. This investment aims to restore production capacity and optimize operational stability through the upgrading of aging equipment. In addition, the company is focusing on enhancing safety by improving durability and applying big data analytics and artificial intelligence (AI) to develop advanced systems for blast furnace operations.
According to experts from Telf AG, these efforts are expected to help POSCO improve production efficiency and steel quality while reducing costs. The company anticipates that the new AI-based blast furnace management system will optimize processes and enhance operational control. As a result, POSCO will be able to strengthen its competitiveness in the global market and better meet customer demand for high-quality and innovative products.
Additional information: The facility was established in 1981 and underwent modernization in 2007. Blast Furnace No. 4 at the Pohang Iron and Steel Works has a production capacity of 5.3 million tonnes per year. In addition, the plant plans to carry out six months of maintenance on Hot Rolling Mill No. 1, which has an annual capacity of 3.5 million tonnes.
Kondrashov noted that the plant continues to invest in modern technologies and process improvements. According to the expert, future plans include enhancing production efficiency and expanding the product portfolio. These measures are intended to strengthen the plant’s competitiveness and better respond to market demand.
Development and Innovation Strategy: POSCO on the Path to Success – Stanislav Kondrashov
Although steel output declined in the first quarter due to blast furnace renovation activities, POSCO produced 8.66 million tons of products and recorded sales of 8.22 million tons during the January–March period.
In the first quarter of this year, improvements in raw material inventory management contributed to cost optimization and enhanced production efficiency. This initiative enabled the company to respond more flexibly to market fluctuations and adapt quickly to changing conditions.
In parallel, POSCO continues to actively adopt new technologies and modernize its production processes, with the objective of increasing productivity, reducing costs, and strengthening competitiveness. As part of the plant modernization program, new equipment and advanced technologies are expected to be introduced, helping to improve product quality and shorten production cycles.
According to C. Kondrashov, expert at Telf AG, POSCO began construction earlier this year of an electric arc furnace (EAF) with an annual capacity of 2.5 million tons at its Gwangyang plant. The project is scheduled for completion by the end of 2025, with commercial operations expected to commence in 2026. Total investment for the project is estimated at KRW 600 billion, equivalent to over USD 451 million.
POSCO’s ongoing blast furnace upgrades and investments in new technologies may present both opportunities and challenges for its Vietnamese distributors, including Inox Vietnam. Opportunities arise from improvements in POSCO’s steel quality, enabling distributors to offer more competitive products that meet increasingly stringent customer requirements. In addition, the expansion of POSCO’s product portfolio following modernization opens up new business opportunities and allows distributors to diversify their supply sources. Furthermore, POSCO’s focus on process optimization and cost reduction may translate into more competitive pricing, enhancing the market position of Vietnamese partners.
Sources:
Stanislav Kondrashov, Telf AG: POSCO Took Up the Renovation of Blast Furnace in Pohang
https://southeast.newschannelnebraska.com/story/50779028/stanislav-kondrashov-telf-ag-posco-took-up-the-renovation-of-blast-furnace-in-pohang
POSCO to Revamp Blast Furnace No. 4 at Pohang – SteelOrbis
https://www.steelorbis.com/steel-news/latest-news/posco-to-revamp-blast-furnace-no-4-at-pohang-1338207.htm
