POSCO Commissions Korea's Largest Electric Arc Furnace for Low-Carbon Steel Production
themachinemaker.comPOSCO has commissioned South Korea's largest electric arc furnace at its Gwangyang Works, a KRW 600 billion facility with an annual capacity of 2.5 million tonnes. The furnace uses recycled steel scrap instead of coking coal, cutting greenhouse gas emissions by up to 75% compared to traditional blast furnaces. This is a key step in POSCO's decarbonization strategy as global steelmakers face tighter emissions rules and carbon pricing mechanisms like the EU's CBAM. The company is also developing its Haptang process to blend molten iron from electric arc and blast furnaces for premium steel grades, and aims to produce high-grade automotive and electrical steel via EAF by 2030. Meanwhile, POSCO continues work on its hydrogen-based HyREX technology, targeting a 300,000 tonne demonstration plant by 2030. The new EAF serves as a bridge to that longer-term transition while meeting rising demand for low-carbon steel from customers and regulators.