SEOUL, KOREA - Amid a prolonged slump in steel demand worldwide, POSCO relaunched its Gwangyang No. 1 Furnace, the largest in the world, on June 7 after completing expansion works.
POSCO completed the repair and expansion works of the Gwangyang No. 1 Furnace about a week ahead of schedule. The annual capacity of the furnace, accordingly, increased by 3 million tons.
As POSCO followed suit of Hyundai Steel, there are concerns about a possible worsening of the supply-demand imbalance. Korea's crude steel production shot up to 69 million tons last year, up more than 20 million tons from 48 million tons in 2009.
One of the key factors behind the hike in the nation's crude steel output is the growing competition to expand capacity. Hyundai Steel built up an integrated steel mill, while electric furnace companies are increasing their output.
With the Gwangyang No. 1 Furnace expansion works, POSCO's annual crude steel capacity at home will likely to exceed 30 million tons. POSCO, moreover, is set to operate this December its No. 3 FINEX that has an annual capacity of 2 million tons.
