Week needed for restoration after fire at Posco's Pohang steel mill

Another blaze broke out in Posco's steel mill in Pohang, North Gyeongsang, on Sunday, raising doubts more than proper management of the aged equipment at the world's second-largest steel factory that has suffered multiple fires in recent years.

A fire breaks out at Posco's steel mill in Pohang, North Gyeongsang, early Sunday morning. [YONHAP]

Another blaze broke out in Posco's steel mill in Pohang, North Gyeongsang, on Sunday, raising doubts over the proper management of the aged equipment at the world's second-largest steel factory that has suffered multiple fires in recent years.

The fire, which occurred around 4:20 a.m. at No. 3 Finex furnace that produces molten iron, was fully extinguished in five hours leaving one worker with second-degree burns. Seven workers were evacuated, and some 140 firefighters had to mobilize due to the 50 meters (164 feet) of high equipment in the factory, according to the police.

The fire had reportedly spread after three explosions. The exact cause of the blaze is still under investigation.

The No. 3 Finex plant has been shut down, and Posco predicts the “complete restoration will likely require a week,” said a Posco spokesperson.

“But we expect no setbacks in scheduled production, as we can make up the production in our three blast furnaces in the Pohang factory,” the spokesperson said.

Firefighters extinguish a fire that broke out at Posco's steel mill in Pohang, North Gyeongsang, early Sunday morning. [YONHAP]

The Finex furnace produces molten iron directly from iron ore fines and noncoking coal, rather than using a blast furnace, which is considered a cost-saving and environmentally friendly way of producing steel.

The No. 3 Finex plant began operation in 2014 with around 2 million tons of production capacity, which accounts for 10 percent of total molten iron production available in the steel mill. The Pohang plant has three blast furnaces with production capacity totaling 12 million tons, and two Finex furnaces with 3.5 million tons.

On the same day morning, a fire also broke out in a factory of Posco Future M, a battery making arm of Posco, in Pohang, around three kilometers (1.9 miles) away from Posco's steel mill. The fire was extinguished 30 minutes without any injuries.

Posco's steel mill in Pohang, North Gyeongsang, after the fire that broke out early Sunday morning was completely extinguished [YONHAP]

The latest Pohang steel mill fire follows massive fire in its No. 2 blast furnace in December last year, which, at the time, halted all three furnaces at the plant. The production resumed in a day leaving no causalities.

A fire again broke out in a coal-transporting facility in the steel mill in February, with a worker hospitalized after inhaling the smoke.

The Pohang steel mill has suffered a total of eight fires in the past four years.

The Pohang steel mill, which is about three times the size of Yeouido, western Seoul, is world's second-largest steel making plant, as of last year, behind Posco's Gwangyang, South Jeolla plant. The Pohang plant makes up 24 percent of Korea’s total steel production every year.

Posco, Korea’s largest — and the world’s fifth-largest — steelmaker, posted 438 billion won ($313.6 million) in operating profit in the third quarter, down 40 percent on year, hit by cheaper products from Chinese players. Sales dropped 2 percent to 9.5 trillion won during the same period.

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