Steel giant POSCO plans to enter the industrial gas market by increasing the capacity of oxygen and nitrogen storage tanks in operation at the steelworks. The steel major has recently held a ground breaking ceremony for expansion of storage tanks at its Pohang works.
“Considering POSCO has the largest oxygen and nitrogen production along with storage facilities in Korea, it is expected to not only improve the supply of industrial gas to downstream industries like domestic semiconductors and shipbuilding but also contribute towards recovery of national economy,” the company officials said in a statement.
The capacity of oxygen and nitrogen tanks at POSCO’s Pohang and Gwangyang works is 49,000 tonnes (t) and 36,000 t respectively. These gases help to burn iron ore, coal and remove impurities during steel manufacturing. The left over is supplied to other industries.
As oxygen and nitrogen are two important gases used in steelmaking and other industries, demand for these gases has been increasing lately with boom in semiconductor and shipbuilding industries in South Korea.
Following this, POSCO also has plans to invest KRW 70 billion to expand the existing capacity of storage tanks at Pohang works to 60,000 t and Gwangyang works to 46,000 t by H2CY23.
By CY24, the steel major would sell 4,50,000 t of oxygen and nitrogen gas to distributors. This will contribute in stabilising supply and demand in the market. However, industrial gas will emerge as a new growth line for steel makers’ ESG management.
Note: This article has been published with an article exchange agreement between SteelDaily and SteelMint.
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