POSCO has secured energy-saving product certification for its Pos E-save product from CRRC*, a specialized U.S. energy conservation certification body.
*CRRC: Cool Roof Rating Council

​▲A building utilizing Pos E-save products

CRRC independently tests products for solar reflectance and thermal emittance, certifying those that meet required standards. Obtaining this certification allows products to display the CRRC certification mark, instilling confidence in consumers and construction professionals.

POSCO’s newly certified heat-reflective and insulating steel sheet, Pos E-save, is a high-performance surface-treated steel sheet. It employs solar-reflective materials as a coating to block external heat and incorporates micropores in the coating to minimize heat transfer, thus providing an insulation effect.

While conventional color-coated steel sheets for building exteriors typically have an infrared reflectance of about 17%, Pos E-save achieves approximately 50%. Under identical conditions, this can lower roof surface temperatures by over 10°C compared to traditional color-coated steel sheets.

Primarily used for steel building materials, this steel sheet contributes to cooling energy savings in summer by preventing building and roof surface temperatures from rising excessively. In winter, it aids in heating energy conservation by preventing internal temperature loss. Furthermore, with a thermal conductivity of 0.2W/(m·K)*, it offers excellent insulation, capable of preventing condensation caused by temperature differences between interior and exterior during winter months.
*Water’s thermal conductivity is about 0.6 W/(m⋅K), aluminum’s is 237(m⋅K)

It also features noise reduction capabilities for external sounds such as raindrops and boasts superior weather resistance, garnering attention in Korea and international architectural cladding markets.

The Automotive Steel Surface Research Group, which led the product development, stated, “Recent climate changes have heightened interest in building exterior materials that can improve energy efficiency. The U.S. CRRC certification validates the energy efficiency superiority of our developed product. We will continue focusing on developing products that contribute to energy conservation.”
 

His beginnings at Gwangyang Steel Works

After entering the company, Kim Yong-hoon directly operated the hot-coil production line at the No. 2 Hot Rolling Mill’s operation cabin. At the time, all of the hot rolling equipment had to be operated manually, and Kim operated the speed drive which controlled tension during the rolling process and the reduction operation which determined the thickness of the sheets of steel and the actual rolling itself. Because everything was done manually, workers learned through experience, and new workers made lots of costly mistakes. Dealing with the aftermath of accidents was another physical burden on the workers.

Kim Yong-Hoon working at an operation board at the No. 2 Hot Rolling Mill in 1993

Kim recalls, “One time, a foreign guest visited the mills. He approached me for a handshake, but I couldn’t take my hands off of the operation board for even a second to shake his hand. That’s how focused you had to be to operate the mills back then. After 13 years of doing that, I knew we needed an automated system. That’s why in 2003, I willingly joined the Finishing Mill No Touch Operation Task Force Team (TFT).” The TFT worked to implement an automated system, but when they could not produce the desired results in a year, the team was dismantled.

Following the TFT, Kim Yong-Hoon worked in facility management and quality assurance. In order to produce high-quality products and minimize the number of defects, workers had to be flawless in facility management and operations. Again, Kim knew that the only way to achieve this was through automated operations, but it was too difficult to implement an automated system in an existing mill.  

A New TFT, A New Opportunity

As demand for high-strength steels surged in 2012, including for automotive steel sheets and API steel sheets (oil pipelines, oil-related structural steel products, etc.), POSCO decided to establish a TFT for the construction of the No. 4 Hot Rolling Mill at Gwangyang Steel Works.  Kim Yong-hoon, who was eager to apply automated systems and enhanced the quality of steel products, joined the TFT.

The Opening of the No. 4 Hot Rolling Mill at Gwangyang Steel Works in 2014

The construction of the No. 4 Hot Rolling Mill was special because it was the first mill to be built independently, without relying on Japanese firms that previously provided all the technology and equipment. In order to become technologically independent, the TFT had to research everything from scratch. That way, they could work in the automated operations systems from the design stage. In the end, the No. 4 Hot Rolling Mill opened in Gwangyang on October 30, 2014. The automation technology Kim and the TFT applied to the mill greatly increased the quality and quantity of production of high strength steels. However, Kim Yong-Hoon didn’t stop there and continued to enhance the mill’s technology.

FM Full-Length Hydraulic Oil Application Technology

Kim was the first in Korea to come up with the finishing mill (FM) full-length hydraulic oil application technology and applied it to the No. 4 Hot Rolling Mill. This new technology ensures the quality of high-strength steel surfaces in its finishing stage.

Traditionally, the rolling process for high-strength steels is more difficult because when the tough material passes through the rollers, it causes severe rolling fatigue and vibration due to high resistance. However, there is a way to eliminate rolling fatigue and vibration. By spraying oil on the rolling equipment, an oil film is formed between the roller and the rolled material. This oil film can transmit a large amount of force with less effort, meaning the steel will roll with less fatigue and vibration. While using hydraulic oil is common, what is different about this technology is that the oil can be applied to the full length of the rolled material, without worrying about slippage.

Kim Yong-Hoon checking on the equipment at the No. 4 Hot Rolling Mill

“I worked closely with the research department and equipment engineers to develop this technology. We ultimately came up with a way to remove the oil as soon as one roll is finished, before the next one begins to eliminate slippage. We got rid of the misconception that you can’t spray oil on the full length of the rolled material. As a result, we decreased the occurrence of scales from 0.83 percent in 2015 to 0.23 percent in the first half of 2017. The number of times irregular replacements occurred decreased from 20 times in 2015 to 7 times in 2017. We also expanded giga-grade steel production from 20 steel grades in 2015 to 30 steel grades in the first quarter of 2017. Due to the impressive results, the technology was chosen as a second-grade proposal this year.”

No Touch Operation Technology

Kim then went on to find implement the use of big data at the mill for increased efficiency and performance. He took the settings that the operators inputted manually for the operation equipment and turned it into big data in the form of an operations table, and continuously accumulated data for the automatic operations equipment program, or No Touch Operations.

“I vowed to implement the No Touch operations technology to the  No. 4 Hot Rolling Mill from its early construction stage. Because it was my first time, I made numerous mistakes. However, after a year of accumulating data on the shape of the rollers and on the final crown, we are now entering the stabilization phase. Even now, we are gathering significant data to increase the accuracy and efficiency of operations and we are updating the information whenever we have to apply it to a new material. The data table is really the key to the No. 4 Hot Rolling Mill’s success.”

Kim further applied the No Touch operation technology to speed operations to keep the tension of the rolled material constant and prevent the material from leaning to the left or right using loopers.  Kim says, “This process also took one year of research and failures to develop. The new hydraulic looper is 5 times faster than traditional motor loopers. The increased efficiency allowed us to go from needing 2 operations desks to only one and we allocated the remaining speed driver to quality improvement work. As a result, we have increased the added value of high strength steels produced at the No. 4 hot strip rolling mill.”

Equipped with all the new technology, the No. 4 Hot Rolling Mill surpassed the record production capacity of 3.5 million tons and reached 3.9 million tons in 2015 and 4.1 million tons in 2016. To add, the production share of POSCO’s World Premium products for the No. 4 Hot Rolling Mill increased from 44.3 percent in 2015 to 67.3 percent in the fourth quarter of 2016 and reached 71.2 percent in the first quarter of 2017. The work rate also increased from 92.42 percent in 2015 to 96.02 percent this year and the quality nonconformity rate dropped from 1.67 percent to 0.64 percent in the same time span.

The Mindset of a Master

Kim Yong-Hoon was able to come up with numerous improvements to the operation systems at POSCO’s No. 4 Hot Rolling Mill because he views everything as a potential problem. He is always looking for ways to improve the production process and equipment, even if things appear to be working fine.

Kim’s goals for the future are straightforward. “We will do our best to make a sustainable POSCO by lowering the cost of products and raising the quality and production of high value-added steel.” His consciousness of potential problems and solutions is what lead to his achievements that include 18 proposals for representative registration and 11 proposals for joint participation. He also obtained a patent for his Variable Hot-Rolled Bite Cooler Header, which was awarded the A-grade by the POSCO Research Institute. This year, he is a POSCO Master of Korea, and he shows no signs of slowing down in his search for new technology and innovations to prevent accidents and improve POSCO’s products.

Auto Industry’s Challenge to Meet Consumer Demands

Mileage, design, and emissions. Which do you consider the most when purchasing a car? It is difficult to say that one is more important than the others, and fortunately, POSCO GIGA STEEL offers unique benefits for each one to meet the needs of today’s auto industry as it faces increasingly strict demands on safety and fuel efficiency.

More than ever, the industry is requiring that a vehicle goes longer distances with less fuel, which means the car must be lighter.  Also, technological advances have enabled cars with more power, requiring them to be safer. Consumers also want a car that represents their personality, demanding vehicles with more sophisticated and elegant designs.

Cars now need to drive smoothly, burn less fuel, and ensure safety, all while boasting an elegant design (Image courtesy of Mercedes-Benz AG).

While there are other conditions that need to be considered, it is paramount that cars meet the following three conditions in order to satisfy consumers: fuel efficiency, safety, and design. But these demands are becoming increasingly difficult to meet, and the only solution is to discover a technology that enables all of the above. For safety considerations, in the event of a collision, parts of the car also need to absorb the kinetic energy and protect the passengers inside.

In addition to having a battery and electric motor, the electric car is different from standard cars because the battery is a part of the frame itself.

6 Types of POSCO GIGA STEEL Tailored for Different Auto Parts

A car’s body frame requires different steel products for specific parts (Image courtesy of Renault)

POSCO GIGA STEEL is an advanced high-strength steel (AHSS) that can meet these various demands. Let’s take a look at the different types of POSCO GIGA STEEL products and how each one is being used in different parts of the car.

Complex Phase (CP) Steel

Complex Phase (CP) steel is often used to make reinforced auto parts that require high crashworthiness ratings, such as sill side panels, bumper rails, and door impact bars. It plays an extremely important role in the car frame as it is highly resistant to dents or bumps. In the past, the side panels of race cars were purposely made to be thicker in order to prevent dents and protect the driver inside and this naturally led to the vehicle becoming considerably heavier. However, CP steel minimizes these disadvantages. In the event of an impact, cars made with CP steel retain its original shape considerably better than other car frames due to its high strength and also has an exceptional ability to absorb all of the energy while still exhibiting an impressive thinness. It is often incorporated into the sill side panels and door impact bars to allow for a more spacious design.

Dual Phase (DP) Steel

Dual Phase (DP) steel can be easily welded and deformed and boasts a high level of total elongation (the rate at which the material is stretched without snapping). DP steel is commonly used in seat rails or other lower body reinforcements that run underneath the passenger seat. The tensile strength is at least 980MPa, but because it also exhibits impressive ductility, it can easily be used for random spare parts.

Transformation Induced Plasticity (TRIP) Steel

Transformation Induced Plasticity (TRIP) steel first made its way into the auto industry about six years ago. As the auto industry is beginning to value lightweight cars more and more, TRIP steel has received more attention. It is mainly used in the inner parts of the car body. This part of the car needs to absorb shock and impact and also be flexible enough to be fitted around the complex inner structure of the car. With TRIP steel’s outstanding combination of strength and ductility, it is one of the most commonly used high-strength automotive steels in the auto industry today.

Martensite Steel (MART)

Because Martensite steel is naturally high in strength, thinner sheets produced from roll forming (a metal forming process in which steel is continuously shaped or formed until it reaches a desired cross-section) still retain the same level of performance as conventional parts. Thinner parts also have the added benefit of reducing the weight.

Hot Press Forming (HPF) Steel

Hot Press Forming (HPF) steel is a different class of steel made with a unique steel production process. Typically, as steel becomes higher in strength, it is more difficult to mold into the desired shape through conventional processes. However, through the HPF process, the steel is heated to 950℃ before press forming. At high deformation temperatures, steel sheets are very soft so that difficult shapes can be obtained easily. During forming, the heated steel sheet cools down rapidly in the die block, so that the resulting pressed parts have a very high strength level. Due to its combination of high strength and formability, HPF steel is often used in the B-pillar of a car which requires intricately shaped parts as well as the A-pillar roof side rails which are prone to damage.

Post Heat Treatment (PHT) Steel

The chassis that supports the car frame needs to be extremely durable and resistant to impacts or shocks on the road as its main function is to improve the ride quality of the vehicle.
In order to increase the durability and torsional resistance, the material needs to be quenched and tempered. Before going through the heat treatment portion of the process (quenching), the material can be easily molded into spare parts due to its reduced strength. After being molded, it is heated up to 950°C and then rapidly cooled by water. This is why PHT is called “post-heat treatment steel”. Due to its ultra-high strength, it also has lightweighting benefits and is typically used in a vehicle’s chassis, stabilizer bars in a suspension system, and torsion beams.

These six types of POSCO GIGA STEEL each have their unique advantages in terms of processability & strength, production cost, and ease of application. Compared to conventional materials, thinner pieces can be used while still retaining the same level of performance and strength. Due to these incredible characteristics, POSCO GIGA STEEL is able to meet the increasingly stringent requirements of the auto industry for safety and efficiency.  

Image courtesy of Renault

Researchers in the auto industry are constantly looking for a stronger, more formable material. As the auto industry undergoes another paradigm shift, POSCO GIGA STEEL will continue to offer unique solutions that can satisfy both automakers and consumers.

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Automotive coated steel, one of POSCO’s World Premium Products (WPP), is a high-grade product that requires a high level of sophisticated technology. Only 20 out of 800 steel companies in the world can produce it at this time. Last year, POSCO sold approximately 9 million tons of automotive steel sheets, accounting for 10% of the global automotive steel sheet market.

The ‘Smart Solution for Coating Weight Control Based on AI‘ is a technology that drastically reduces the deviation of coating weight by using artificial intelligence to precisely control the Continuous Galvanizing Line (CGL), the primary technology used in automotive steel sheet production.

In particular, this technology uses an automated control technology that predicts the coating weight in real time and accurately meets the target coating weight by combining the coating weight production model of the artificial intelligence technique with the control model of the optimization technique.

A developer and worker are seen in the operating room monitoring the optimal coating weight predicted through artificial intelligence. POSCO succeeded in developing the ‘Smart Solution for Coating Weight Control Based on AI‘ through a joint industry-university effort, and applied it to POSCO 3CGL last January. With artificial intelligence, it is now possible to collect hundreds of different types of data in real time, as well as accurately predict and control target coating weights.

Coating weight control is a highly-sophisticated technology that keeps the thickness of the coating layer consistent even when operating conditions change at the request of automakers. When coating weight is controlled manually, quality deviates depending on the skill level of the worker, inevitably resulting in significant amounts of wasted zinc. However, the plating process is now automatically controlled by artificial intelligence, increasing the quality of POSCO’s automotive coated steel while decreasing production costs. These new automated processes have also helped to increase work efficiency and productivity with workers.

Since the inauguration of CEO Ohjoon Kwon in 2014, POSCO has been preparing to take the lead in smart solutions by integrating AI into its smart factories. Last June, POSCO Technical Research Laboratories identified the need for an automated coating weight control system and collected the relevant data after discussing with several departments. POSCO worked with Prof. Jon-seok Lee of the Department of Systems Management Engineering at Sungkyunkwan University in Seoul, Korea, to develop the artificial intelligence coating weight prediction model algorithm. Prof. Lee is an expert in statistics, data mining, machine learning and optimization methodologies. He collaborated with POSCO researchers to develop the coating weight prediction program after analysis of the plating process.

Starting in July 2016, a beta program was introduced for two months. After successful completion of the beta test, POSCO Technical Research Laboratories added an additional program to ensure quality control even under changing operating conditions.

The core AI technology that was applied to the coating weight control automation is a self-learning software that utilizes big data deep learning techniques. This method operates in real time allowing the AI program to stay up-to-date by analyzing hundreds of different types of data generated during the plating process. It can accurately predict and control coating weight through real-time, even if equipment has been replaced or operating conditions have changed.

The completed coating weight control automation solution was applied to POSCO’s 3CGL line in Gwangyang on a trial basis for approximately 2 months, enhancing accuracy and stability. Normally, when operating manually, deviations in the coating weight can extend up to 7g per m², but with POSCO’s AI-based technology, this number is reduced to 0.5g per m². After a technical verification process, the technology was incorporated into the 3CGL line on January 5.

To maintain its position as a global leader in automotive coated steel technology, POSCO is planning to apply this coating weight control automation solution to other CGLs at home and abroad, like the recently opened Thailand CGL. POSCO is also taking steps to introduce artificial intelligence technology to the manufacturing processes of other steel products while also continuing to build smart factories that can help POSCO continue to be a leader in the steel industry.

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This evaluation was designed to measure the current status of the sector and also to see where it is headed. LG Electronics, LS Industrial Systems and Hanwha Q CELLS were selected along with POSCO Humans.

A panoramic view of a floating solar power system installed with POSCO’s corrosion-resistant World Premium PosMAC Profile in Boryeong Dam by POSCO Humans.

POSCO Humans started its solar power business in 2013 with Korea Water Resources Corporation in order to provide a framing system for a floating solar power system. Currently, the company is carrying out projects in the structural and EPC sectors.

POSCO Humans received excellent evaluations for its steel structures that were built for solar facility installations, the use of PosMAC materials for solar power generation, and its eco-friendly floating solar power systems.

In particular, POSCO Humans received high marks for securing superior technology in its PosMAC profile – including a structure used exclusively for floating solar power generation facilities and exclusive bolts that utilize PosMAC. In particular, the PosMAC profile is a bolt-assembled structure that eliminates the need for hole machining and special tools. Therefore, the PosMAC profile garnered attention as a cost-saving product that can greatly cut back on installation time.

Based on this technology, POSCO Humans also conducted other energy-related projects including a floating solar power system at Boryeong Dam (2.0Mw) in South Chungcheong Province, a land solar power system (1.0Mw) in Shihwa Lake, a water purification plant in Siheung (0.4Mw), and a pumping station at Gwangmyeong for the Korea Water Resources Corporation (0.6Mw).

In the future, POSCO Humans will develop its solar EPC business into new next-generation business areas and plan to provide its customers with total solution services such as business feasibility studies, design, construction and post-construction operations.

*PosMAC: A highly corrosion-resistant alloy-coated steel sheet developed by POSCO’s proprietary technology which is more than 5 times stronger than conventional coated steel sheets in corrosion resistance and chemical resistance.

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POSCO held POSCO Tech Day for Renault Samsung on September 21. (From right) Renault Samsung Purchasing Division Executive Director Kapshik Hwang, POSCO Automotive Materials Marketing Managing Director Yangsu Yun and Renault Samsung Manufacturing Division Managing Director Juhyoung Baek listening to an overview about the performance of the SM6 joint development.

POSCO holds Tech Day to expand technical and commercial cooperation with its clients and to strengthen strategic partnerships. The company is planning to do this through enthusiastically promoting the excellence of world premium automotive steel products and the best practices of innovative solutions marketing.

POSCO and Renault Samsung are maximizing synergy between the two companies through active technical cooperation in automotive materials and collaboration in marketing as well. The SM6, released by Renault Samsung in 2016 and has since been well-received in the market, was created through four years of close technical cooperation. It featured Korea’s first mass production of high-strength steel for outer panels (260Y BH) and also the first TWB-HPF processing technology, thereby applying an ultra-high strength steel that is higher than 1.2GPa to 18.5% of the car body. This enabled the model to obtain a KNCAP Grade 1 and an ENCAP 5 Stars in a new car safety evaluation, ensuring excellent safety even with a lightweight car body. In March, POSCO and Renault Samsung also strengthened their win-win partnership with a joint promotion for the SM6 at the POSCO Center.

The Tech Day for Renault Samsung featured three concepts under the slogan “Innovation Partner, POSCO”: 1) innovative solutions, 2) win-win growth and 3) the POSCO experience. In particular, the show focused on vividly and effectively delivering the features and competitiveness of POSCO’s automotive materials.

Furthermore, by holding a technology seminar on the current status of POSCO’s advanced technology development and new weight reduction solutions, the show also provided a venue to discuss the future direction in these areas for new cars and strengthen the partnership between the two companies.

POSCO plans to secure its place as the world’s best automotive steel sheet supplier while reinforcing cooperation with domestic automakers by holding Tech Days for Ssangyong Motor Company and GM Korea.

TWB-HPF (Tailor Welded Blank-Hot Press Forming) is a converged technology combining TWB (tailor welded blank), which cuts steel sheets of different thicknesses and grades in desired shapes and welding them with a laser, and HPF (hot press forming), which adds high heat to the steel sheets and then rapidly cools it in order to increase grade intensity.

POSCO Announces New Steel Sheets at Detroit Motor Show

Solution Marketing Revs Up POSCO’s Steel Business

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In addition to working as a sales engineer in Indonesia and Singapore for two years starting from 1993, Lee was also in charge of establishing technology strategies for automotive steel sheets as well as producing Tailor Welded Blanks (TWB) at the Gwangyang steel mill. Already equipped with knowledge of cold rolled steel products and automotive steel plates, Lee was able to build two manufacturing centers in Mexico, POSCO-MPPC plant 1 and POSCO-MPPC plant 2. He made big contributions in stabilizing the plants during their early stages while working as the Director of Production for CGL (Continuous Galvanizing Line) 1 and 2 in Mexico, which was POSCO’s very first overseas construction.

Lee, who has successfully completed the construction of Thailand CGL last May, said, “I would like to compete in the Southeast Asian market with our unique POSCO style.” POSCO Today had a chance to speak with Lee directly and hear about his goal of creating the best CGL in Southeast Asia, specifically through taking full advantage of POSCO employees’ work capabilities.

What is the background behind the construction of Thailand CGL and what are some of its expected outcomes in the future?

Thailand has not only positioned itself as the base for the automotive industry in Southeast Asia, but it is also known as the center of the manufacturing for products like home appliances. Speaking of the automotive industry, Japanese automobile companies, which entered the Thai market during the 1960s, currently occupy over 90% of the total automobile production, and these companies all share a demand to receive material supplies from local suppliers. In order to meet such needs and to expand the market further, Japanese steel companies, such as NSSMC and JFE, have entered the Thai market and have been operating CGLs since 2013.

POSCO, which provides around 150,000~200,000 tons of galvanized steel sheets to Thailand every year, has also entered the Thai market in order to provide stable supplies for its existing clients and to further expand the market. This will be accomplished through fulfilling localization needs for the material supply and demand of the Southeast Asian clients, and responding proactively to the recently heightening commerce regulations.

Moreover, with the launch of the AEC (ASEAN Economic Community) last December, it is expected that POSCO will be able to provide an extended supply of its high-quality plating materials to even intra-regional countries such as Vietnam, Indonesia and Malaysia.

What differentiates POSCO’s technologies and products from those of Japanese and other international companies?

Although NSSMC and JFE have been operating CGLs since 2013, they are still facing some quality issues. This is not because Japanese steel companies fall behind in terms of their technology, but because of their lack of global experience and inadequate ability in operating overseas production corporations.

POSCO, however, is currently implementing systematic technology support at a favorable time, based on the CGL operation know-hows learned from previous CGL locations, such as Mexico, Indonesia and China. POSCO is also working to standardize operation methods in more detail for employees. Although POSCO may not have been able to get a head start in terms of operating CGLs, the future for POSCO is looking bright from facility and quality aspects.

Tell us about POSCO’s unique marketing strategy in the Southeast Asian market, including Thailand.

Thailand CGL was established in order to stably produce automotive steel sheets and to provide highly competent materials to regional clients. Prior to providing automotive steel sheets, however, a quality certification from each automobile company is required, which usually takes about 1.5~2 years.

Therefore, until quality certification is acquired, POSCO plans on creating profit and expanding its contract base through differentiating the quality of GI products for home appliances and painting, areas in which our competitors are having a hard time producing for.

There is also a number of small local automobile companies in Thailand. These companies do not have an established material buying channel, and they cannot even attempt to establish a relationship with a large steel company like POSCO due to their outdated technology. POSCO, therefore, plans to provide manufacturing technologies, such as mold technology, and automotive steel sheet buying channels for these small local companies through Thailand CGL, which will also allow POSCO to expand its contract base based on a solution marketing system.

What is your plan in terms of creating a synergy with local employees?

No one should be treated differently, no matter where you are from. By all means, standards for employee management should not differ by one’s country or region of origin.

If you are respectful and considerate of others – local employees, that is – synergy among the employees will be maximized regardless of their nationality or region of origin. As long as every employee works with a strong sense of vocation for working at the best steelmaking company, the outcome is going to be successful. For better performance, problems faced among people should be resolved through humane respect and care, while their working styles should resemble that of POSCO’s.

Lastly, what is the ultimate goal of Thailand CGL? And, do you have any final words?

Thailand CGL must compete in the same industry, serve the same clients and compete with the same galvanized steel sheet products as the Japanese steel companies, which are known as the world’s best within the industry.

Every employee at Thailand CGL will be devoted to securing a comparative advantage in advance in all aspects, including quality, facility and corporation operation, and be able to write a POSCO success story in Thailand.

POSCO continues to strive to maintain its role as a leader in the steel industry, integrating into the Southeast Asian market seamlessly through producing premium products for the automotive industry while utilizing their global expertise. Lee is determined to make Thailand CGL a success, and he believes that with the help of POSCO’s dedicated employees and the company’s competitive edge over other major steel producers, this goal can soon become a reality.

POSCO Holds Completion Ceremony for Thailand CGL, Southeast Asia’s First Automotive Steel Sheet Plant

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The completion ceremony of Thailand CGL (Continuous Galvanizing Line), which has an annual production capacity of 450,000 tons, was held on August 31 in the Amata City Industrial Estate in Rayong, Thailand. Over 250 people attended the ceremony, including POSCO CEO Ohjoon Kwon, Deputy Prime Minister and Minister for Foreign Affairs Tanasak Patimaprakorn, Minister of Industry Atchaka Sibunruang, Rayong Governor Somsak Suwansujarit, Korean Ambassador to Thailand Kwangil Noh and employees of local clients.

Members of the Thailand government and executives from parent companies, including POSCO CEO Ohjoon Kwon (featured in the middle), participated in the ribbon cutting ceremony for the completion of POSCO’s Thailand CGL on August 31 in Rayong Province, Thailand.

“Thailand is the hub of the AEC (ASEAN Economic Community) that was launched last year, and is positioning itself as the automotive production base in Southeast Asia as well as the center of the home appliances industry,” claimed Kwon in the welcoming speech that day. “With today’s completion of Thailand CGL, POSCO will be devoted to becoming a total solutions partner that provides differentiated products and customized solutions in Thailand, while also creating value and growing with our clients.”

POSCO CEO Ohjoon Kwon and Deputy Prime Minister and Minister for Foreign Affairs Tanasak Patimaprakorn shaking hands after handwriting a message on a coil produced in Thailand CGL.

The completed CGL is a premium automotive steel sheet production base that began construction in September 2014 with a total investment of $300 million. POSCO plans to expand into the premium automotive steel sheet market in Thailand by supplying the products manufactured at the new operation to global automakers and parts manufacturers such as Toyota, Nissan and Ford stationed within the country. The company also plans on providing the processing services of POSCO-TBPC, which is a processing center near Bangkok.

Thailand is one of the biggest automobile producers in the world, with more than 50% (2 million vehicles a year) of the automobile production capacity in Southeast Asia. It also has a large-scale automobile market, in which China’s SAIC Motor will be establishing production facilities with a production capability of 200,000 by 2017, and where Japanese automakers are constantly expanding their facilities.

In particular, with the recent zero-tariff measures taken among AEC member states and the Thai government’s eco-friendly car industry policy, the Thai market has high growth potential that will expand to an annual production capacity of 2.8 million by 2020.

Automakers and parts manufacturers in Japan have been advancing steadily in this region since the 1960s. In 2013, to supply materials to Japanese companies on site, steelmakers such as JFE and NSSMC completed automotive steel sheet plants with capacities of 400,000 tons and 360,000 tons, respectively.

Despite the increasing production scale of automotive steel sheets in Thailand, the supply still falls short of demand, which inevitably results in greater dependence on imports from overseas markets. Thus, POSCO plans to build stronger strategic partnerships by smoothly supplying materials to global automakers and parts manufacturers (including Japanese companies) in Thailand, and to expand sales of premium plating materials in the automotive steel sheet market. Accordingly, POSCO reviewed the project to establish a local production subsidiary in 2011, launched the CGL project in 2014 and finally completed the construction on August 31, 2016.

POSCO-TCS employees will contribute to the reinvention of POSCO the Great by securing a leading competitive edge in the automotive steel sheet market in Southeast Asia.

By completing the plant, POSCO has established an optimized solution marketing system in Southeast Asia, covering departments from production to processing, sales and technical support with the local processing subsidiary and the production facility in Vietnam. POSCO will be able to strengthen its position in competition with global steelmakers by expanding the production capacity for automotive steel sheets in Thailand, in addition to its production output from India and China.

With the completion of Thailand CGL, POSCO’s production capacity for automotive steel sheets overseas has increased to 2.25 million tons a year. POSCO also plans to establish and extend the CGL operation in Gwangyang and China, operating seven lines in Korea and six lines overseas, thereby producing more than 9 million tons this year. After 2018, the company will complete a 10-million-ton sales system to secure its place as the world’s best supplier of automotive steel sheets.

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The whole world is going through a severe climate change, even breaking the highest temperature record in history. The concentration of carbon dioxide measured in Hawaii at a high altitude is now above 407ppm.

The United States Government has announced a supporting policy that highly induces photovoltaic (PV) energy usage among the whole land. The government has set up a goal to have 1 giga-watt per PV amount for low-income houses built with federal government subsidies by 2020. This goal has been increased to 10 times of what the president Obama initially tried to build for ‘The Climate Action Plan’. The reasons that are strongly urging this plan is to decrease the energy levels of low-income households and to increase the number of available jobs.

And it’s not just the U.S. The whole world has reached the record of increasing the total amount of bioenergy by 147 GW in 2015. 173 nations have determined the initial goal amounts of bioenergy, and 146 nations are currently executing the terms of the bioenergy supporting policy. The bioenergy is now economically efficient enough to compete with fossil fuel, and Germany has set up goals to have over 50% of total power production to come from bioenergy. The current plan is to increase the PV generating unit by 6~7 GW through replacing old equipment and other steps.

Even though Germany usually has less sunshine than Korea because of its lower latitude, the PV generating unit reaches almost 35% of its total output during sunny weekdays and 50% during weekends. Germany is a sunlight generating country, with a 40 GW PV generating unit and a 1.5 million PV generating unit within its limits, based on records from late 2015.

It is now a trend to make ‘100% bioenergy’-run cities, communities, and companies all over the world. Developed countries are not the only ones trying to strengthen financial support for establishing ‘bioenergy’ supplies, overcome their energy security initiative and current environmental problems; developing countries also are working towards addressing these issues. An interesting point about this trend is the associated time period of inexpensive fossil fuel.

Reasons for Solar Energy Becoming Popular

The two types of bioenergy that could be applicable for commercial use are wind energy and solar energy. Wind energy should be used in an area with wind speed that is at least 5~6m/sec, and because of noise pollution, wind energy tends to be used in offshore wind parks.

However, since building solar energy outlets is not costly and is able to be installed on any type of land, it is rapidly spreading.

A solar battery that is commonly used is the PN junction, an N-type semiconductor that spreads phosphorus, superimposed on P-type semiconductors with boron added to high-silicon single crystal. When the sun shines on the solar battery, the electron can freely move through its intended opening by the energy that sun possesses. The electron then leans on the surface of the N-type semiconductor and the hole on the P-type semiconductor. Therefore, the voltage differentiation from the upper and lower surfaces of the solar battery creates an electric current. Then, the accumulated current turns into electricity.

The PV generating unit continues to work by generating electricity until the sun shines, so future produced energy will be developed into solar energy, which produces the infinite resource.

There are already more cases regarding 100 kilo-watt electricity sources being produced by installing PV panels on available spaces, such as large parking lots, reclaimed land, or the roofs of factories. For detached houses, 3kW electricity can be produced on the roof, and apartments can produce 250~500W of electricity using the lower space of windows near back porches.

In the future, if Energy Storage System (ESS) and PV-developing districts can be combined, some sources of thermal and nuclear power could be replaced because a new stable electric power supply will be available without a constant amount of sunlight generation.

Outstanding Steel Technology Needed for Creation of Sunlight Generating Unit

Boryung Dam Water Solar Power Plants constructed from PosMAC, a corrosion-resistant alloy from POSCO.

The life of PV generating units that produce solar energy is around 25~30 years. Therefore, the durability of the equipment is very important. The costs of PV generating units can be divided between solar modules, solar inverters, unit structures and construction. The solar module and inverter makes up 50% of the cost, and the construction fee makes up for the remaining 50%.

The most important part of solar modules is their effectiveness. A module produced from high-silicon single crystal should be selected, and the rated output within 12 years will be 90%, while the rated output within 25 years will be 80%. The construction should be able to withstand the load and stress from severe natural disasters, including rapid temperature change or storms, and should not deteriorate or corrode even with long-time exposure to the sun.

The strongest construction of solar power plants uses weatherproof and corrosion-resistant surface preparation steel sheets. POSCO, especially, is lowering the cost of construction by developing various steel machinery and fixtures to create PV panels more easily. Solar generating units can build their competitiveness as a future energy source with the support of outstanding steel technology.

Written by science technology columnist Dr. Junjeong Lee

The opinions expressed in this POSCO Report piece are the author’s own and do not necessarily reflect the views of POSCO.

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The POSCO-CCPC processing center in Chongqing held the completion ceremony for its Plant No. 2 on May 24 and started full-scale production.

Equipped with two blanking lines and a slitting line that process high-strength steel, Plant No. 2 has an annual production capacity of 140,000 tons. It is expected to contribute substantially to the sales expansion of POSCO’s World Premium structural steels.

CCPC is working to build a close relationship with major car manufacturers in Chongqing, such as Changan Ford and Changan Automobile, to ensure a stable supply of products. The company hopes to achieve this by securing processing facilities for automotive steel sheets, high-strength steels and STS.

In addition to CCPC’s Plant No. 1, which has been in operation since 2007 and has an annual production capacity of 170,000 tons, and its recently completed Plant No. 2, the company plans to expand with even more facilities.

Meanwhile, POSCO-CDPC in Chengdu held the completion ceremony for two new factories on May 25.

CDPC is a processing center which will supply global automotive manufacturing companies in southern China with processed automotive steel sheets.

Chengdu accounts for more than 90 percent of automobile production in Sichuan province. It is center of the automobile industry in southern China, producing 920,000 cars in 2015 alone.

CDPC strives to improve the competitiveness of its clients with its strict quality management and safe production standards, and plans to contribute to the economic development of Sichuan province by manufacturing high value added products.

POSCO has been operating 21 processing centers in 13 cities in China since 2003.

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