Here is a person who has a great interest in both steel and the environment. His name is Mr. Greenie Kang. Another person here is Greenie’s friend, Mr. Steely Kim. He is a POSCO employee as well as a steel expert.

Greenie is looking into a TV. As he explores the steel used to make TV parts with a magnifying glass, he finds a tiny nut! He becomes curious about how such hardened steel was cut to make such a fine detailed nut. On searching online, he learns that ‘free-cutting steel’ was used to make these small nuts of the TV. Another thing. He learns that these free-cutting steel contain ‘lead.’ Lead is known to be harmful to the environment, as well as the human body. Is this okay? Greenie meets his friend Steely to find a solution to this issue.

l TVs & Automotives — Various Nuts Used Around Us Contain ‘Lead’?

Have you seen these tiny nuts used to assemble TV parts? I saw one up close, and it had tiny little curves engraved on them! I was wondering how this solid steel was cut, and I found out that it was made with special steel called “lead-based free-cutting steel.” Does this mean that it contains lead, which is harmful to the environment? What is this lead-based free-cutting steel?

Calm down, Greenie. I’ll explain it all for you. First, let me tell you about what free-cutting steel is. It’s not something you’ve heard every day, right? Free-cutting steel is a kind of wire rod product that is specially designed to be machined by precise cutting work. It’ll be easy to understand if you think of it as a wire or spring. To improve machinability, free-cutting steel is made by adding sulfur, lead, and phosphorus. The principle applied here is this: the force exerted by cutting tools, such as knives, is concentrated on the added components of the cutting-steel, causing cracks and facilitating machinability.

Free-cutting steel is an important steel material, mainly used for fabricating precision parts for electric, electronic, and OA equipment. TV, printer, and automotive parts that we see around us are also made with it. Free-cutting steel is categorized into several types, depending on the added component, and lead-based free-cutting steel is the type mostly used to make ultra-precision parts due to its outstanding machinability.

▲ Free-cutting steel is used in various products around us

However, lead-based free-cutting steel contains lead components that are harmful to the human body. Supposing that lead accumulates in the body, it can cause fatal health issues like inflammation and damages to the nerve system, right? On measuring how much lead was emitted while processing lead-based free-cutting steel, it was found that large amounts were detected in the air, though not visible to the naked eye. In addition, lead-based free-cutting steel causes environmental pollution, since harmful lead components are exposed during the recycling and disposal of products that have free-cutting steel. South Korea imports all lead-based free-cutting steel. Around 23,000 tons are imported annually.

l No Need to Worry! Meet POSCO’s Graphite-based Free-cutting Steel, PosGRAM!

So, lead-based free-cutting steel pollutes the environment and even threatens the health of workers. Then why do they use it?

As the harmfulness of lead-based free-cutting steel became known, its use is decreasing worldwide. However, the problem is that there isn’t any other type of free-cutting steel with good machinability to replace it. So, even RoHS and ELV regulations, which are international guidelines for restricting hazardous substances, set aside exceptions for lead content in the case of steel alloys. RoHS and ELV limit the amount of lead in products to 0.1%. However, in the case of lead-based free-cutting steel, which has no alternative, the standards allow up to 0.35%.

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So, you mean there are products that contain up to 0.35% of lead around us?

Unfortunately, that is the case for now. Many global steelmakers have tried to develop free-cutting steel that is lead-free, but it was in vain to come up with an alternative that has both excellent machinability and price competitiveness against lead-based free-cutting steel. POSCO has also been focusing on developing steel that can replace it. R&D period alone took three years. At last, POSCO researchers found an alternative substance that has no toxic ingredients while maintaining the excellent processing properties. It is none other than graphite! Last year, POSCO succeeded in developing and mass-producing graphite-based free-cutting steel for the first time in the world. This new product is named PosGRAM(Pos GRAphitic steel for Machinability). To create graphite-based free-cutting steel, fine graphite is distributed within the steel, enabling it to be utilized as free-cutting steel.

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Graphite? Is it something like charcoal?

An example of graphite that you can easily see would be a mechanical pencil lead. Graphite is a mineral made of pure carbon. The binding structure between the carbon layers is weak, so it is easy to cut through — just like mechanical pencil lead breaks easily. In addition to its excellent machinability, graphite also acts as a lubricant between the tool and the chip, thus reducing friction. In other words, graphite-based free-cutting steel reduces tool wear. Also, it displays similar chip removal when compared to lead-based free-cutting steel. Since graphite-based free-cutting steel has no microstructure anisotropy, there is no difference in machinability — no matter in which direction it is cut.

▲ Graphite-based free-cutting steel, PosGRAM, shows at least equivalent or superior performance in terms of tool wear and chip removal compared to lead-based free-cutting steel! Besides, it shows no difference in machinability in any direction, because it has no microstructure anisotropy.

l No More Lead-based Free-cutting Steel, Right?

I’m really glad that POSCO developed PosGRAM. Now we don’t have to worry about environmental pollution caused by lead-based free-cutting steel anymore!

That’s right. POSCO has opened a new chapter in global Sustainable material technology by successfully developing PosGRAM to replace lead-based free-cutting steel! As of now, the use of lead, a harmful element, is being regulated in many countries around the world. So, global precision parts manufacturers and automotive companies are trying to stop utilizing parts that contain hazardous substances such as lead. POSCO’s solution, which keeps pace with this flow, is expected to be of great help in protecting our planet from lead poisoning.

The annual global market demand for free-cutting steel is estimated to be 1 million tons, among which 600,000 tons are for lead-based free-cutting steel. There is no domestic manufacturer in Korea, so over 23,000 tons of lead-based free-cutting steel are imported annually from overseas. The average amount of lead in it is 0.3%. Assuming that all existing lead-based free-cutting steel is replaced with PosGRAM, the use of harmful lead is expected to be reduced by 1,800 tons per year (69 tons in Korea).

Since this PosGRAM was developed by POSCO, it may assist in strengthening the industrial competitiveness of Korea as well.

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So, will the lead-based free-cutting steel around us disappear for good?

Now that PosGRAM has been developed, it has to be applied to the market successfully. That is why POSCO has been actively engaging in marketing activities to enable the new product to quickly replace the existing lead-based free-cutting steel in Korea. Aiming to eliminate the use of old ones in Korea within the next five years, POSCO is offering various solutions to its customers, who have been utilizing lead-based free-cutting steel only, so that they can adopt PosGRAM. POSCO is also pursuing to obtain PosGRAM’s certification from end-customers.

For example, to SeAH Special Steel, the largest manufacturer of free-cutting steel products in Korea, POSCO has provided the technology that enables the utilization of PosGRAM instead of lead-based free-cutting steel. And both companies have jointly conducted processing evaluation as well. POSCO and SeAH Special Steel are also carrying out various certification processes together, starting with industrial products to expand the use of PosGRAM gradually into the home appliances and automotive markets.

Once POSCO’s PosGRAM successfully settles in the market, there’s no need to worry about lead being used in cars, home appliances, and OA equipment that we see around us. Workers will also be safe since they aren’t exposed to lead. PosGRAM doesn’t cause any water pollution or soil contamination on being recycled or disposed of, so PosGRAM is a way to “save the environment and protect the health of people.”

Greenie was quite worried about the harmful lead-based free-cutting steel at first, but now he looks quite satisfied hearing the news of POSCO’s PosGRAM. POSCO isn’t just a world-class steelmaker — it actively participates in resolving environmental issues with its excellent steel solutions. Even today, POSCO is on its way towards making Earth safer

Vietnam has been expanding its industrial base following rapid economic growth. However, environmental problems have emerged as side effects of this development and are drawing the attention of the Vietnamese people. That’s why the local employees of POSCO-Vietnam came up with this promotional video with the message of using eco-friendly sustainable steel products. The video posted on YouTube — under the title “Green & Clean Viet Nam With POSCO, Steel save Us” — begins by showing the current situation of the unmanageable amount of waste in Vietnam.

Next, some examples of ‘Steel Save Us’ are introduced — such as using stainless steel tumblers instead of disposable plastic cups, building steel houses instead of temporary houses, and steel bridges instead of wooden bridges — along with a song raising awareness on environmental issues. The employees in the video dance to the song and also show short acts related to the topic.

POSCO entered the Vietnamese market by launching the Hanoi office in 1991, a year before Korea and Vietnam established official diplomatic relations. In 2009, POSCO set up a cold rolling mill — producing 1.2 million tons annually — in Vung Tau Province, 80 km southeast of Ho Chi Minh City. POSCO also built manufacturing subsidiaries and a processing center to actively promote various product lines, such as stainless steel, rod wire, rebar, section steel, and so on. There are four POSCO overseas subsidiaries currently in Vietnam including the regional representative subsidiary POSCO-Vietnam(cold-rolled product manufacturing subsidiary) — POSCO SS VINA(rebar, section steel manufacturing subsidiary), POSCO-VST(stainless steel manufacturing subsidiary), POSCO Vietnam PC(processing center, existing P-VNPC+VHPC). As of 2018, the total sales of Vietnamese subsidiaries amounted to an approximate 2.3 trillion KRW. They are in charge of steel product sales not just in Vietnam, but also throughout Southeast Asia like Thailand and Malaysia, taking its place as the “ASEAN steel hub”.

Along with the steel subsidiaries, POSCO affiliates are also actively joining into the Vietnam market. POSCO INTERNATIONAL, POSCO E&C, POSCO ENERGY, and POSCO ICT are operating subsidiaries in Vietnam, and the overall investment into Vietnam has reached 2 billion USD so far. There are around 2,700 local employees in different POSCO affiliates, creating excellent local jobs in the market. POSCO will carry out marketing activities focused on Vietnam’s current issues — such as this sustainable steel campaign — and enhance its position in Vietnam with a strategic synergy between POSCO affiliates, like the steel business and global & infra business.

  <Green & Clean Viet Nam With POSCO – Steel Save Us>

Below, The Steel Wire speaks with Choi Jaeyong, Manager at POSCO’s Environment & Energy Business Department and currently a research fellow at the World Steel Association, to discuss sustainable manufacturing trends in the steel industry as well as the evolving automotive steel industry.

What are some of the most exciting initiatives taking place in the steel industry to combat greenhouse emissions and to create more sustainable production methods?

First, we must realize that one of the main causes of greenhouse emissions comes from using fossil fuels for the reduction of iron ore. Therefore, any ideas to improve this process and reduce the use of fossil fuels will also help reduce greenhouse gases. One of the most exciting initiatives taking place in the steel industry is replacing coke with hydrogen on a partial basis as a reduction agent. However, this is only effective if the hydrogen is produced by non-carbon energy sources.

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In addition to finding fuel alternatives for blast furnaces, advancements in smart factory technologies, such as AI and IoT, are also helping create more sustainable production methods while significantly enhancing the decision making process. For instance, the digitalisation of the control systems to reduce variations in process parameters has helped reduce energy usage as well as unexpected defects. Moreover, IoT can help employees at worksites by preventing industrial accidents with regards to machinery and equipment.

What do you think steelmakers should do to become more energy efficient?

First of all, steelmakers should work to achieve best-in-class operational standards across all processes. This includes improvements in engineering, operations, reliability, yield, health, and safety. Second, employees should stay up-to-date on the latest developments in steel production to ensure that advancements are shared utilized across the entire industry. Third, we must use collaborative and innovative R&D techniques to make improvements throughout all processes. POSCO is already practicing the first two very well while the third continues to be a priority for POSCO CEO Ohjoon Kwon.

I believe there is no one single solution for energy management; however, if those of us in the steel industry remain enthusiastic about finding creative energy saving solutions, new ideas will continue to arise and evolve.

From your experience working with POSCO’s energy management systems, can you tell us what POSCO is doing to become more energy efficient?

Pohang Steelworks is one of the most intricate modern steel manufacturing sites in the world. We continuously look for improvements throughout all processes including in the combustion, gas, corrosion, mechanical, instrument & measurement engineering practices, and statistical analysis techniques. If problems are found they are analyzed to eliminate and prevent faults or delays.

Also, at Pohang Steelworks, each facility has their own characteristics from raw materials to end products. Producing coke, sinter, and pig iron is a near continuous process, but producing steel is a batch process. Respective rolling mills have different rolling schedules and maintenance periods. Upstream processes, such as the blast furnace, have a fixed maintenance schedule. Why is knowing the characteristics of the process important? The processes create by-product gases and if there is a break in the use of the gases, the furnace will need to be flared once the gasholders are full. This has a significant impact on the emissions intensity for the site. Pohang Works uses many kilometers of pipelines and multiple power plants in order to utilize all the by-product gases and my role is to eliminate the flaring ratio and to operate energy facilities with high efficiency. The most important job is to maintain the facilities so that they are in good condition and can operate when needed.

Inside steelmaking plant of POSCO (Image courtesy of World Steel Association)

For sites like POSCO, energy needs to be viewed holistically to be able to create a balanced energy generation system, which helps avoid waste in gas & electricity. There is a project currently underway to build a new integrated energy management system that will help optimize energy use and prevent waste.

More and more automakers around the world are focusing on sustainability and emission reduction. What kinds of benefits can sustainable materials like steel bring to the auto industry? Also, what is POSCO doing to help automakers manufacture more sustainable vehicles?

Steel is better than alternative materials like aluminum and carbon fiber composites for various reasons. Properties of steel vary greatly but it’s always adaptable to making new products for different end products. When the electric arc furnace (EAF) melts steel, it can be formed into a new product without a loss of quality. On the other hand, other alternative materials composed of alloys at a lower temperature remain as molten alloys, and they require additional processing to separate the various elements from the original material, which cannot always be done without a loss of quality. For steel, this is not a problem. Also, because of the sustainable life cycle of steel, automakers can recycle old automobiles into brand new cars without a reduction in quality.

Additionally, by replacing conventional steel materials with advanced high-strength steels (AHSS), drivers can reduce fuel usage by as much as 5% and greenhouse gas emissions by 6%.

POSCO has developed numerous lightweight solutions to enable automakers to produce lighter, more eco-friendly products with no reduction in strength and durability. Using more sustainable materials like POSCO GIGA STEEL can bring numerous benefits to the auto industry as it offers automakers the ability to produce stronger cars with fewer emissions.

For more information on POSCO GIGA STEEL, take a look at the 6 reasons why POSCO GIGA STEEL is Ideal for both automaker and consumers.