Posco expands its oxygen, nitrogen capacities

Posco is spending 70 billion won ($55 million) to expand oxygen and nitrogen storage capacity in its two steel mills, aiming to enter the industrial gas market in earnest.

Posco employees including Yoon Duk-il, center, head of the company’s management and planning division, take part in a groundbreaking ceremony for the construction of oxygen and nitrogen storage tanks at its Pohang steel mill on April 27. [POSCO]

Posco is spending 70 billion won ($55 million) to expand oxygen and nitrogen storage capacity in its two steel mills, aiming to enter the industrial gas market in earnest.

Ground was broken Wednesday on new facilities at the steelmaker’s steel mills in Pohang, North Gyeongsang, and Gwangyang, South Jeolla.

Posco’s Pohang mill currently has oxygen and nitrogen storage tanks with a combined capacity of 49,000 tons, while the Gwangyang plant has 36,000 tons capacity.

The steelmaker plans to increase the capacity to 60,000 tons in Pohang and 46,000 tons in Gwangyang by the end of 2023.

Oxygen and nitrogen are industrial gases used in various industries like steel, semiconductors, ships, chemicals and automobiles. Around 4.5 million tons of gases are traded in Korea every year.

With the expansion, Posco aims to sell a total of 450,000 tons of oxygen and nitrogen gases per year starting in 2024. That means it will supply around 1,200 tons of gases daily, which would require 60 tank trucks to carry.

“It is anticipated that Posco’s oxygen and nitrogen production and storage facilities will strengthen the stable supply of industrial gas in local industries including semiconductors and ships, as well as contribute to stimulating the regional economy,” said Yoon Duk-il, head of Posco’s management and planning division.

BY SARAH CHEA [chea.sarah@joongang.co.kr]