South Korean steelmaker Posco is stepping up efforts to normalize operations at its Pohang Steelworks following a series of safety incidents, while accelerating plans for next-generation steelmaking technologies.
Posco said it has restarted the No. 3 FINEX plant at Pohang ahead of schedule after more than a year of partial overhaul following an explosion and fire last November. The plant, with an annual capacity of 2 mln tons, had been slated to restart by year-end. At the same time, Posco plans to shut down the smaller No. 2 FINEX unit, which has a capacity of 1.5 mln tons, citing higher maintenance costs and weaker profitability.
FINEX, developed in-house by Posco, eliminates the need for sintering and coke-making by directly using fine iron ore and coal, lowering costs and reducing environmental impact compared with conventional blast furnace routes.
Looking ahead, Posco plans to break ground early next year on a hydrogen reduction steelmaking (HyREX) demonstration facility at Pohang. The HyREX process uses hydrogen instead of coal to reduce iron ore, producing water rather than carbon emissions, and could theoretically eliminate around two tons of CO2 per ton of steel produced. The project will use an electric smelting furnace and is targeted to begin operations in 2028, with initial output of about 300,000 tons and commercialization aimed around 2030.
Posco acknowledged that challenges remain around hydrogen costs, infrastructure, and technology localization, but said lowering hydrogen production costs and building stable supply systems are key priorities.
Posco is one of the world’s leading steel manufacturers. The group’s current consolidated crude steel production capacity is approximately 45 mln tons annually. The company operates a global network of steel mills, processing centers, and subsidiaries in numerous countries.
