POSCO to expand crude steel production with aim to become No. 5 player

Executives and employees who participated in the vision declaration ceremony held at POSCO’s Pohang headquarters are shouting “fighting,” on July 13. [Photo provided by POSCO]

South Korean steelmaker POSCO is set to expand production of crude steel for the first time in 10 years by carrying out a large-scale investment, with an aim to achieve annual output of 52 million tons by 2030.

POSCO held a vision declaration ceremony at its headquarters in Pohang, North Gyeongsang Province, on Thursday, and unveiled the goal of becoming the world’s fifth-largest steelmaker by 2030. POSCO aims to achieve 100 trillion won ($78.7 billion) in sales and 52 million tons of annual production capacity of crude steel.

POSCO had maintained its crude steel production capacity at 43 million tons in the last 10 years. The last time it upped global capacity was in 2013 when it built the first integrated steel mill in Southeast Asia in Indonesia.

The aggressive goal to raise the capacity by about 10 million tons over a span of 7 years is unprecedented.

Investments are expected to be made overseas.

POSCO plans to raise the current global production of 5 million tons to 15 million tons by building steel factories in North America, Indonesia, and India.

Under the plan, POSCO is expected to outpace China’s Shagang Group to become the No. 5 player in terms of crude steel production for the first time in 11 years.

POSCO, in the meantime, pledged to seek growth in the quality and quantity of steel production, such as by building environmentally friendly production lines that can produce hydrogen reduction steel.