11/23/2012 | Press release

Gangneung magnesium refining factory construction completed

distributed by noodls on 11/23/2012 04:16

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- Environmentally friendly•high quality magnesium ingots to be manufactured... Non-ferrous material synergy expected

POSCO completed construction of a magnesium refining factory in Okgye Gangneung of Gangwon-do on November 20th.

The meeting was attended by 150 people, including CEO Chung Joonyang, Gangwon-do Governor Choi Munsun, National Assemblyman Kwon Seongdong, Ministry of Knowledge Economy Growth Engine Division Leader Kim Jaehong, Gangneung Mayor Choi Myeonghee and others.

CEO Chung Joonyang in his commemorative speech said, ``Without forgetting the founding spirit of serving the country through steel, we will successfully operate Korea`s first domestic magnesium refining factory to increase national competitiveness and contribute to revitalizing the local economy, taking on all duties in becoming a loved company.``

POSCO`s magnesium refining business was initiated with an MOU for investment in November 2009, the first stage of construction was started in June 2011, followed by the start of test operations and stabilization this past March, and the first set of products were shipped in September.

The total production capacity of the magnesium refining factory is 10,000 tons annually, but based on technology and know-how accumulated in the first stage of the business, POSCO will develop its own vertical thermal reduction technology by 2018 and increase annual production capacity to 100,000 tons, becoming a leader in the material business and a magnesium refinery with the best global competitiveness.

POSCO plans to lead global material technology particularly by establishing a highly efficient, environmentally friendly process by applying the world`s first vertical thermal reduction method.

Magnesium ingot use has relied entirely on imports from China, but with the Gangneung magnesium refining factory starting operation, the company expects to stably supply environmentally friendly, high quality magnesium ingots made of domestic dolomite, increasing competitiveness of related parts industries. The factory is particularly expected to contribute to applying environmentally friendly materials for automobile production, making electronic products lighter, and solidifying upper and lower processes by procuring magnesium ingots as an intermediate material to the Suncheon magnesium plate factory
Also, by producing magnesium ingots, POSCO expects to strengthen supply networks between family companies and promote sales in Japan and North America to expand synergy in the non-ferrous material industry moving forth, and expand into the world market to secure global competitiveness.

Park Yena mela@posco.com
(Data=New Material Business Division)

- CEO Chung Joonyang is explaining magnesium kitchen products to guests who attended the magnesium refining factory completion ceremony on November 20th. From the left, Ministry of Knowledge Economy Growth Engine Division Leader Kim Jaehong and National Assemblyman Kwon Seongdong, and from the right, CEO Chung Joonyang and Gangwon-do Governor Choi Munsun.

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