POSCO to Expand Automotive Steel Capacity With New Gwangyang Plant

SEATTLE (Scrap Monster): POSCO Holdings has announced a major expansion of its automotive steel business with a KRW 480 billion investment in a new hot-dip galvanizing facility at its Gwangyang Works in South Korea.

Construction of the No. 8 Continuous Galvanizing Line (8CGL) began on September 8, 2026, with commercial production anticipated to begin in 2028. The facility will have an annual processing capacity of approximately 450,000 metric tons. This will lift POSCO’s total hot-dip galvanized steel capacity to around 4.95 million metric tons.

The new line will primarily manufacture galvanized sheets for automotive exterior panels, including extra-wide products intended for midsize and larger SUVs and recreational vehicles.

According to a company news release, 8CGL will be closely linked to its newly completed electric arc furnace (EAF) at Gwangyang. An ultra-high-temperature heat-treatment system will be installed to process EAF-based steel for automotive applications. Additionally, it will support the production of lower-carbon galvanized products that meet all required quality standards.

The project will also feature state-of-the-art artificial intelligence systems to enable real-time material analysis, allowing necessary equipment adjustments to reduce defects and improve consistency. In addition, higher-risk tasks will be handled by robotic systems, the company noted.