Posco International bolstering motor core output to achieve global leadership

[Photo provided by Posco International]

South Korea’s Posco International has set a target to expand motor core output to 4 million units by 2025 from current modest 690,000 units in the component crucial in generating electricity within motor to meet burgeoning demand for electric vehicles.

The trading arm of South Korean steelmaking conglomerate Posco unveiled its eco-friendly motor core business strategy on Monday that it will expand the production lines at home to nearly triple output to 2 million units next year from 690,000 units last year.

The company will focus on drawing orders from the United States and Asia and also secure more production facilities and professional staff for its production base in China and India. For stable business outside Korea, it is reviewing to set up joint ventures in Europe and the U.S. as well.

Under the scheme, Posco International is planning to invest total 300 billion won ($268.8 million) with an aim to generate yearly revenue of 208 billion won after selling 1.26 million units of motor core this year, 600 billion won (2.95 million units) in 2023 and 750 billion won (4.21 million units) in 2025.

Last year, the company delivered 167.1 billion won in revenue with sales of 690,000 units.

Posco International owns a 100 percent stake in Posco SPS, which has been producing motor cores pivotal to generate electricity within a motor in vehicles and industrial facilities for the past 46 years. The company started supplying motor cores to Hyundai Motor and Kia in 2009 and has added foreign finished car brands as its customers. It has so far received 2.5 trillion won worth orders for 10 million units to be delivered until 2025.

Posco SPS recently developed an innovative emboss-free (EM Free) technology for higher efficiency and better mileage of green cars. As the only motor core maker with own mold technology research institute in Korea, it is capable of servicing the entire process from mold design to core manufacturing for customers.

“The green car market is estimated to grow fast from 8 million units in 2020 to 16.5 million units in 2025 and 38 million units in 2030,” said a Posco International official. “An EV usually features one motor core. Once demand for dual and trial motor system starts rising, the motor core market is expected to expand much faster.”

Hydrogen vehicle materials market is another target.

Posco SPS already developed a non-coated super-ferritic stainless steel Poss470FC for the bipolar plates of fuel-cell stack, which is now supplied to Hyundai Motor for the fuel-cell EV model Nexo.

Posco International shares rose 2.19 percent to 18,700 won in Seoul at 12:07 p.m. Tuesday.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]