POSCO hosts 50th global technology convention ‘World Steel Association Technology Committee (TECO)

TECO is a global convention in which global steel companies share their current status of technology development and discuss the current issues that the steel industry is facing. POSCO hosted the 50th TECO for a second time following its first hosting of TECO back in 2010, to celebrate its 50th anniversary this year.

At this convention, more than 60 experts from steel and related industries such as ArcelorMittal, NSSMC, Tata Steel and Voestalpine and also Secretary-General of the World Steel Association joined to shine the conventions. This convention held in Gyeongju, South Korea from April 23rd to April 26th.

Since sustainability has become main global issue, the main focus of the convention was carbon dioxide emissions and energy. The participants in the convention expressed their own perspectives related to the development of iron and steel manufacturing, rolling process technology and development of innovative products and digitalization that lead positive impacts on environment.

Wonderful opportunity to spread POSCO’s world premium technology

POSCO’s own technology that may shine in the convention is ‘high-manganese product and manufacturing technology that is invented first in the world. This unique technology was one of the driving forces of POSCO become world leading company.

Additionally, participants had a great opportunity to experience Pohang Steel Works, the FINEX plant, smart factory and rolling system and then visit POSTECH to see world’s 3rd 4G synchrotron accelerator.

* 4G synchrotron accelerator: ‘Ultra-high-performance gigantic microscope’ that observes the microscopic structures and reaction of materials using synchrotron radiation when accelerating electrons at the speed of light.

The World Steel Association, founded in 1967, is the most authoritative organization in the steel industry, which promotes the understanding and interests of the steel industry. Currently, as many as 170 steel companies, related associations and laboratories around the world are listed as members. The World Steel Association and the Technology Committee shares the technologies developed by individual steel companies in every year to propose joint research on steel technology and encouragement of cooperation.

Upon completion, the Green Iris will transport limestones from the port of Donghae in Gangwon-do to Gwangyang Works from the beginning of 2018.

POSCO’s high manganese steel allows the fuel tank to withstand temperatures as low as -196℃, so that it can store and transfer LNG. Moreover, it is highly weldable and cost-efficient compared to other common materials for LNG fuel tanks such as nickel steel or aluminum alloys.

POSCO developed the technology for its high manganese steel after 10 years of research since the late 2000s. Now, it is one of POSCO’s leading World Premium Products (WPP). Due to strengthening environmental regulations worldwide on emissions of sulfur oxides, nitrogen oxides and carbon dioxide from vessels, demand for high manganese steel for LNG tanks are expected to increase dramatically.

Cover photo courtesy of Gas Asia Summit.

In June, 12 participants completed a two-week introduction course, where they got to learn about POSCO’s history, Korean culture and POSCO’s overall operations. Then, they were dispatched to each respective department for hands-on work experience.

In addition, participants can also integrate Korean language courses with work. As a result, most participants have already taken their TOPIK, a Korean language certification test, and received their certifications.

To close off the six-month program, GMP participants took part in a workshop on December 7, at the POSCO Center to share their results and discuss ways to improve the GMP.

Pedro, one of the participants from POSCO-Mexico said, “This has been an invaluable experience and my. I have a greater understanding of POSCO’s operations thanks to the GMP, and I have gained a totally new perspective on business. I will highly recommend this program to my colleagues.”

POSCO is currently in the process of selecting 30 GMP participants for 2018, a sharp increase in the numbers of participants compared to 21 employees this year so that P-level employees can participate in the program. POSCO will continue to train exemplary employees and strengthen the competitiveness of overseas affiliates through the GMP system.

Electrical Steel is used to make electric motors for EVs. (Source: Wonderful Engineering)

According to Markets and Markets, the market for electrical steel is projected to expand from USD 27.84 billion in 2016 to USD 38.98 billion by 2021, at a compound annual growth rate (CAGR) of 7 percent. Electrical steels go through various demanding production processes such as annealing, hot and cold rolling and insulation coating. Having the most advanced production technology is paramount, and choosing the best quality electrical steel will determine the overall performance and efficiency of EVs.

What is Electrical Steel?

Electrical steel, also known as silicon steel, is a steel alloy of iron and silicon used to make the cores of motors, transformers and generators.  This softer type of steel can generate various magnetic properties, has high permeability and low amounts of core loss. It has a small hysteresis curve, meaning reduced magnetic hysteresis as well as iron losses, or energy loss.

There are two kinds of structures for electrical steel; grain-oriented and non-oriented.

Grain-oriented electrical steel sheets are most commonly applied to transformers. (Source: Nikomag)

Grain-oriented electrical steel has a uniform, consistent direction of grains in its structure which allows for greater flux density and magnetic saturation. Most commonly, grain-oriented electrical steel is used for transformers which have a predictable and specific magnetic field direction.

Non-oriented electrical steel plates are traditionally welded together to form electrical motors. (Source: LHD Motor)

A major factor that determines the quality of electrical steel is minimal core loss. Due to the constant change in direction of the magnetic field, the energy that is created can easily be lost in the form of heat. Core loss reduction has to be achieved through high-quality electrical steels that have high flux density and lower levels of core losses.

POSCO’s Hyper NO

POSCO is one of a growing number of companies dedicated to doing its part in creating an environmentally sustainable future. That’s why POSCO has been developing its premium non-oriented electrical steel to provide partners with material solutions for EVs.

Take a look at the video below to see how Hyper NO can increase the performance and efficiency of electric vehicles.

POSCO’s Hyper NO is processed using innovative methods such as the self-bonding technology which replaces traditional welding procedures to improve the core’s bonding force. POSCO also managed to reduce core loss by 5 percent compared to traditional types of non-oriented electrical steel and reduce the motor noise by 5dB with its rolling technology that can process the Hyper NO down to an ultra-thin form of 0/15mm. These technologies, along with the Hyper NO’s high magnetic flux density will increase the efficiency of the motor and improve the overall performance vehicles to which it is applied. Hyper NO is highly sought after by automakers looking for premium-grade electrical steel to apply to their EV motors.    

In February 2017, POSCO expanded its production facilities at Pohang Steel Works to increase its annual production capacity of electrical steel from 80,000 tons to 160,000 tons, enough to produce 2.6 million motors for EVs. The strategic move is in line with POSCO’s commitment towards expanding environmentally-friendly businesses as well as its solution marketing efforts to provide customized material solutions to its partners.

From left to right: Seong Yu, VP of POSCO; Young-hoon Lee, CEO of POSCO Chemtech; Dae-woo Lee, employee representative of the labor-management committee; POSCO CEO Ohjoon Kwon; Won-ho Choi, Chairman of Taehwa; In-hwa Jang, VP of Taehwa; and Tong-il An, General Manager of Pohang Steel Works.

With the completion of the project, POSCO’s top-grade non-oriented silicon steel (Hyper NO) production has increased from 80,000 to 160,000 tons, which is enough to supply parts for approximately 2.6 million electric vehicle drive motors.

Electric steel plates are made by adding 1-4% silicon to iron. They possess excellent electromagnetic properties and consist of high-grade steel material. Depending on the crystallographic direction of the metal, they are categorized as either grain-oriented silicon steel or non-oriented silicon steel. Grain-oriented steel is used as a material for the core of stators like transformers, whereas non-oriented silicon steel is used as a material for rotors like motors and generators as it contains nearly identical electromagnetic properties in all directions.

This capacity expansion project successfully met its goal of producing more top-grade non-oriented silicon steel, which is a core ingredient in high-efficiency premium consumer electronics and electric vehicles. It is an environmentally-friendly material that saves energy and reduces CO2 emissions.

POSCO CEO Ohjoon Kwon encourages employees to continue striving towards becoming a leader supplier of high-quality, non-oriented silicon steel.

As demand for environmentally friendly vehicles and high-efficiency consumer products continue to increase, the demand for top-grade electric steel plates (the materials for core parts) is also expected to rise from last year’s 800,000 tons to more than 1 million tons in 2020. POSCO aims to increase its market share by developing customized products for individual electric vehicle manufacturers and providing specialized services. As the quality of consumer electronics improves at home and abroad, POSCO is hoping to see a spike in profit through increased sales of its top-grade non-oriented steel and premium-grade materials for high-efficiency motors.

This project required an investment of KRW 124.1 billion and helped boost the local economy as a total of 200,000 construction workers were employed during the construction period. POSCO was also able to reduce the total cost of the project by shortening the construction period, recycling equipment, and optimizing the design.

POSCO CEO Ohjoon Kwon said, “With the completion of this project, POSCO is now able to proactively meet the increasing demands for environmentally-friendly cars and high-efficiency premium consumer electronics. We will continue to do our best to give our customers top-quality electric steel plates and lead the premium market with technologically-advanced, high-quality products. ”

With the successful completion of the high-grade material capacity expansion project, the installation of additional equipment, and a stable production system, POSCO is now better equipped to meet domestic and overseas demands for non-oriented silicon steel.

This project is just one of many that POSCO has carried out in order to secure its position as a leading supplier to meet the needs of the ever-expanding high-efficiency premium consumer electronics and electric vehicle market. Other projects have included making improvements to the APL (Annealing & Pickling Line), ACL (Annealing & Coating Line), and the ZRM (Sendzimir Reverse Mill), which is capable of producing 0.15mm steel sheets. This particular project resulted in the production of 0.15mm electric steel plates, which contributes to minimizing power loss in customers’ end products.

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