POSCO, one of South Korea's leading steel manufacturers, has successfully modernized its blast furnace No. 4 at the Pohang plant, marking a significant step in its ongoing efforts to enhance production capabilities and maintain competitiveness in the global steel market. The company invested KRW 530 billion ($381.7 million) in this extensive upgrade project, which has already been completed and the furnace put back into operation.
The modernization project focused on replacing outdated equipment and implementing a smart control system, which is expected to increase the blast furnace's productivity while simultaneously reducing production costs. This dual benefit is crucial in the current global steel market, where efficiency and cost-effectiveness are key factors in maintaining a competitive edge.
As part of the upgrade, POSCO increased the thickness of the blast furnace's shell, a move aimed at improving the stability and durability of the unit. This enhancement is particularly important given the furnace's long operational history, having been initially constructed in 1981. The cooling system was also upgraded to maintain efficiency, further contributing to the overall improvement of the blast furnace's performance.
Throughout its operational life, blast furnace No. 4 has undergone several reconstructions, with its volume increasing from the initial 3.97 thousand cubic meters to its current capacity of 5.6 thousand cubic meters. This latest modernization, which began in April 2024, has further enhanced the furnace's capabilities, with an annual capacity of 5.3 million metric tons of pig iron.
The timing of this modernization is significant, as it coincides with POSCO's efforts to maintain production levels despite ongoing upgrades to its facilities. In the first quarter of 2024, the company managed to keep its steel production and sales relatively stable at 8.66 million metric tons and 8.22 million metric tons respectively, despite the reconstruction work. This was achieved through the strategic use of semi-finished product stocks.
POSCO's investment in modernizing its blast furnace reflects the company's commitment to long-term sustainability and efficiency in its operations. By upgrading key infrastructure, the steelmaker is positioning itself to meet future demand more effectively while also potentially reducing its environmental impact through improved efficiency.
The successful completion of this project demonstrates POSCO's ability to execute large-scale modernization efforts without significantly disrupting its overall production capabilities. This skill will likely prove valuable as the company continues to navigate the challenges of the global steel industry, including fluctuating demand, environmental regulations, and intense international competition.
