However, the Lighthouse Factory POSCO does not stop at simply leading the introduction of the Fourth Industrial Revolution technologies. What’s more? Here are the three factors that make POSCO stand out.

① Challenging the Impossible — POSCO’s Smart Blast Furnace

An unmanned storehouse or an automotive parts assembly factory run by robots could be the first thing that comes to mind when one hears the word ‘AI factory.’ Another might think that Artificial Intelligence could be applied only in specific areas, like the information technology industry. A blast furnace is a gigantic facility with a height equivalent to a 40-story building. On the inside, it is full of a mixture of solids and liquids, so turning it off or ‘looking’ inside seems impossible. Due to these many factors, applying AI to a blast furnace and making it ‘smart’ was considered nearly impossible.

POSCO stood up to this challenge. In 2016, the term ‘Fourth Industrial Revolution’ began to take its place in the industry. POSCO was one step ahead, but not in a hurry. It moved on to Step-by-step digitization and smartization with caution and care. At first, POSCO tried to do this with the technology of a global IT company but did not get satisfactory results. The new technology alone wasn’t enough. However, when POSCO’s unique expertise, intuition, and knowledge — along with its field experts — were combined with it, the advanced AI blast furnace could be born.

▲ The AI blast furnace is made with the combination of vast, sophisticated data, and the experience and intuition of POSCO experts. Deep learning enables optimal results and automates them to reduce human errors and increase productivity.

POSCO field experts — the technicians and engineers — standardized the main variables that determine the state of the blast furnace into Big Data. They enabled the blast furnace to conduct deep learning to extract optimal result value by imitating their know-hows accumulated for over 30 years. Facilities were also steadily improved so that the IoT could replace the manual work. As a result, POSCO boosted the daily production of molten iron by 240 tons. Additionally, workers could focus on advanced work for more creative performance. POSCO saved 250 billion KRW by carrying out 321 smart tasks — including the AI blast furnace — for the past four years.

Through the AI blast furnace, POSCO was able to break away from the old concepts of steel mills. POSCO’s “Technology for the automated control of blast furnace based on deep learning AI” is currently registered and protected as the National Core Technology of Korea (August 2019). POSCO is currently establishing smart factories not only in the blast furnace but also in the overall steelmaking, rolling, and surface treatment process and is creating high-quality smart steelworks.

② POSCO Smart Factory: A Collaboration Of Academia, SMEs, And Start-ups

There is another special feature behind the Lighthouse Factory POSCO — the collaboration of academia, SMEs, and startups in establishing the Smart Factory. As seen below, the World Economic Forum acknowledged POSCO’s effort in forming the collaboration model.

▲ A World Economic Forum article stating the reason POSCO was chosen as a Lighthouse Factory.

POSCO is actively cultivating AI experts in-house and is working with POSTECH for the cause. POSTECH has the best faculty of the artificial intelligence field in Korea. POSCO AI Expert Course, which began in 2017, is a program where selected outstanding POSCO personnel receive training from POSTECH professors. This course has resulted in more than 60 POSCO AI experts in three years. These AI experts are working to build smart factories in the work field.

The collaboration included SMEs and start-ups as well. POSCO developed the AI blast furnace with ‘ECMiner’ since 2016. ECMiner is an SME specializing in data mining*. It created a system that can automatically identify, analyze, and maintain the combustion condition of the blast furnace by combining its data mining technology with POSCO’s accumulated data. In the past, the combustion status was left to the manual labor of workers, checking through the wind hole, and judging by experience. However, with this system, the data can now be taken care of automatically. It also maintains the appropriate combustion level of the blast furnace, which reduces the amount of coal injected. This enables an overall cost reduction.
*Data mining: A technology that looks for hidden, valid, and potentially useful patterns in huge data sets, extracts feasible information, and makes decisions accordingly.

The collaboration resulted in a win-win for both POSCO and ECMiner. POSCO succeeded in creating an AI furnace with Korean technology, and ECMiner also benefited from the experience of processing huge amounts of data at POSCO. All academia, SMEs, and start-ups that participated in the building of POSCO Smart Factory, including ECMiner, can help construct a new one in another factory based on technology experienced at POSCO. This is expected to accelerate the proliferation of smart factories in Korea.

③ Sharing With The Industrial Ecosystem

The Lighthouse Factory POSCO shines brighter for the third factor. On January 9, Korean president Jae-in Moon visited POSCO Pohang works.  POSCO CEO Jeong-Woo Choi said:

“With the Smart Factory, POSCO has reduced production cost of 250 billion KRW for four years. And to relieve the wage gap with business partners, POSCO has extended an additional 270 billion KRW to outsourcing expenses for the last three years. Increased outsourcing expenses raises overall costs. However, POSCO is offsetting this through endless innovation. Through these measures, POSCO aims to foster the competitiveness of the whole industrial ecosystem, and then, in turn, enhance national competitiveness. POSCO’s management philosophy lies here.”

▲ Image source: KTV Youtube video

POSCO willingly shared the achievements of the smart factory project to solve the real problems many partner companies face. At first glance, this might simply seem like a ‘generous side’ of a large company, but in reality, this wasn’t an easy step. POSCO made this possible with its capacity earned through intense internal innovation. This is a good example showing how POSCO innovation isn’t just about POSCO.

POSCO went on to expand the benefits to SMEs who do not have direct business with POSCO. With the support service to build Smart Factory for shared growth, POSCO has provided the Smart Factory technology to 110 SMEs last year alone — 59 of which are companies with no direct business. The service will support 1,000 SMEs by 2023, with no limits to the subject. This is expected to increase the competitiveness of SMEs, which will, in turn, improve productivity and create new jobs.

▲ POSCO’s Smart Factory project not only increases POSCO’s competitiveness but also empowers the entire industrial ecosystem. It also helps in resolving current issues like narrowing the wage gap and creating new jobs.

This is what POSCO’s innovation is all about. The willingness to share with something that was earned hard. POSCO the lighthouse factory is indeed shining the light to a brighter future of the manufacturing powerhouse Korea.

l POSCO’s ‘Deep Learning’ Blast Furnace

POSCO embarked on the journey of smart technology back in 2016, the year when a super AI AlphaGo beat Se-Dol Lee, human champion of the game Go.

As disheartening as it was, Lee’s defeat became an awakening moment for Korea and an opportunity for POSCO to start digging deep on the relatively new concept, artificial intelligence. From that moment on, POSCO accelerated its research into AI and deep learning collaborating with top university researchers across the country to develop smart blast furnace.

The core of smart blast furnace technology is, ‘Deep Learning.’ Deep learning discovers patterns amongst countless random data utilizing it to predict the possible outcome just as human intelligence categorizes random items.

Let’s say there are thousands of random pictures – pictures of cats and dogs. A computer reads, analyzes, and categorizes the data from each picture, so the next time it ‘sees’ similar photos, it will recognize, determine and predict the correct pattern, thus identifying the picture as either cat or dog. Lots of companies are already utilizing this technology to analyze massive volumes of audio-visual data.

l What Is a ‘Smart’ Blast Furnace?

A blast furnace is a gigantic structure of 110 meters in height, taller than an average 40-story building – it makes molten iron. Inside the blast furnace flows a mixture of solids and liquids whose temperature rises as high as 2300℃. Since blast furnaces operate 24/7 non-stop, it’s difficult to ‘look’ inside a furnace.

However, the No.2 blast furnace of Pohang Steelworks is changing the game of steelmaking business. The ‘smart’ Pohang No. 2 furnace utilizes deep learning with an automotive system that monitors and auto-controls the inside conditions of the furnace.

POSCO started by defining the five variables that affect the conditions of a furnace. Then, countless random data was digitized for standardization. All the major data which used to be controlled heuristically is now measured live and become digital data paving a new path so the furnace can start learning deeply.

After the digitization completed, POSCO took on smartization process to establish a system to predict and automate the condition of the blast furnace. The key distinction between digitization and smartization is that smartization allows prediction. Because the data is so massive – over 1,000 types – the smartization process assigns algorithm appropriate for each data and perform analysis-prediction-control. Based on the rendered result, the system determines whether the inside conditions are good or bad – or can cause problems.

To put it simply, a smart blast 1) learns countless live-collected cases and data; 2) self-assesses the conditions of inputs (i.e. raw materials and fuels) and the furnace condition; 3) predicts the result of furnace operation; 4) automatically pre-controls the operating conditions; 5) yields the best combination result with minimum error.

l AI Furnace, Smarter than Humans

Every day, the visual data generated from the smart blast furnace daily reach up to hundreds of gigabytes. The smart furnace learns this massive amount of data and is getting smarter every day. What are the potential implications of this vast learning?

Before the smartization, the field employees used to personally measure the blast temperature every two hours, but now the bottom sensor of the furnace live-records the molten iron temperature. Not only does it live-record the current temperature, it also predicts the temperatures inside the furnace an hour ahead auto-adjusting the temperature of hot metal accordingly.

Furthermore, highly consistent algorithm assesses the inside condition of the furnace utilizing the thousands of images collected from the cameras installed on the tuyere nozzles. Based on the assessment, the smart furnace auto-controls the charging actions of iron ores and coke.

What about the skull? It’s layers of adhesives that stick to the furnace wall. To a furnace, it’s a cancer-like lump. What the smart system does is to analyze the images collected through furnace thermometers, sketch the overall shape of the skull, subsequently auto-controlling the charging mode.

Image source: ‘Shipment standby’ – By Tae-Ha Woo (20th Korean National Steel Day photo contest)

Currently, the Pohang No.2 blast furnace is the testing ground for this cutting-edge technology – the smart furnace boosted the daily production of molten iron by 240 tons. Annually this amounts to 85,000 tons with which automakers can produce 85,000 more cars. It is also a huge energy saver reducing the energy per ton of molten iron production.

One of the biggest achievements of the smart blast furnace is having stabilized the furnace management process through AI auto-control.

For the last three years, POSCO completed developing the auto-control system for each component of the blast furnace. Now the company is focusing on comprehensive integration. Going forward, POSCO plans to expand the applications to the Pohang No.3 and No.4 furnaces – they both have bigger internal capacity (5,600 ㎥) than the current No.2 furnace (2,550 ㎥).

POSCO took a giant step by adopting the world’s first thinking blast furnace. With time, more data will be collected, which will improve the quality and efficiency of molten iron production. In the era of the Fourth Revolution, POSCO will continue leading the way towards the smartization of steelworks across the globe.

Here’s a look at how steel is produced in a steel mill or factory, and what the “smartization” of steel factories will look like.

So, how is steel made?

Iron Making

To make steel, manufacturers first need molten iron. Molten iron comes from two raw materials; iron ore and coal. Iron ore is converted into sinter ore in a sintering plant and coal is converted into raw coke using a coke oven. The processed materials are poured into a blast furnace where hot air reaching 1200℃ is blown in from the bottom through tuyeres, causing a chemical reaction. This process oxidizes the coke and reduces the sintered ore, creating molten iron.   

Steelmaking

In the steelmaking stage, the molten iron is transported to the steel making plant via a torpedo car, where the liquid is poured into a converter. Then, oxygen is blown into the converter to burn off all the impurities. All that is left is pure molten steel.

Continuous Casting

This is where steel finally becomes solidified into different shapes such as slab, bloom and billet. Liquid steel is poured into molds and cooled as it passes through a continuous casting machine until it solidifies into the desired shape.

Hot steel passes through rolling machines to be rolled into specific sizes and thicknesses. (Source: Global Sourcing Blog)

Rolling Process

During the rolling process, steel is heated once more to achieve various sizes and thicknesses. Steel slabs are heated to over 1100℃, then pass through rolling machines. This results in hot-rolled coils that can be shaped for different uses such as thick plates. They can also be processed into long, wire-shaped rods for billets. Often, the hot-rolled coils are rolled at room temperature for cold-rolled coils. Cold-rolled coils can be fabricated to produce galvanized and electrical steel products.

“Smartizating” these processes will involve converging IoT, Big Data, and AI to connect the different facilities, IT systems and workers in order to collect and analyze data for optimization.

POSCO is “smartizing” the steel-production process

POSCO is a steel company looking to lead the industry in adopting smart factories. CEO Kwon Ohjoon made “smartization” one of the 4 key priorities for POSCO starting back in 2014, and Kwon will continue to increase those investments.

POSCO smart factory incorporates artificial intelligence to enhance safety and efficiency.

SEE ALSO: How Smart Factories are Changing the Manufacturing Industry

In 2016, POSCO established its Smart Solution Council in order to research AI, big data and IoT applications. In the same year, POSCO ICT’s smart factory platform, PosFrame, was completed and installed in POSCO’s Gwangyang Steel Mill. PosFrame allows engineers to collect and monitor big data. So far, the company has saved over USD 14 million by incorporating the new technology in its production practices.

Here are some other features of POSCO’s Smart Factory.

POSCO’s Smart Blast Furnace

The Pohang Blast Furnace No.3 became a smart furnace in 2017, following a 102-day repair period. The furnace is now equipped with automated sensors that monitor and control its internal conditions using AI technology. Smart sensors monitor the blast furnace for factors like raw material quality and ventilator status, preventing breakdowns and ensuring a much longer lifecycle.

SEE ALSO: Will Artificial Intelligence Lead to Breakthroughs in the Steel Industry?

Worker Safety

Smart sensors can be used for more than just process monitoring. The company is working toward a full implementation of smart sensors for safety purposes, using IoT to create a better working environment.

Steel manufacturing involves high temperatures and high pressure levels, which is dangerous for workers who come in close contact with the equipment. With smart sensors monitoring all of the factory information, workers will instead be monitoring operation from a safe distance.

Workers in POSCO’s smart factory wear smart sensors for safety.

Wearable sensors, in conjunction with factory smart sensors, will be able to detect if and when workers are approaching potentially dangerous areas, and will alert them. These sensors will also detect and alert with regards to any impending accidents, or life-threatening situations like gas leaks, explosions, or fires.

Also, dust, sulfur, and nitrogen compounds will be removed via a high-plasma method, creating an eco-friendly steel plant and a healthier environment for workers.

POSCO will continue to add more smart features to its steel mills to increase efficiency, safety and sustainability. In efforts to learn and implement new technologies, POSCO CEO Kwon Ohjoon visited GE’s smart factories to learn about their technology earlier this year. POSCO also held the 2017 Smart POSCO Forum to share its insights with clients and affiliates, all as part of its expanding smartization efforts.