POSCO's 6th Mega Blast Furnace... AI Handles Raw Material Quality Inspection and Molten Steel Temperature
Volume 5,500㎥, Annual Production 5 Million Tons
Steel Demand Expected to Recover in Q4
Panoramic view of POSCO Gwangyang Steelworks
[Asia Economy Reporter Hwang Yoon-joo] The No. 3 blast furnace at POSCO Gwangyang Steelworks, which had halted operations in mid-February, has completed its refurbishment and is reborn as an ultra-large blast furnace equipped with the latest facilities including artificial intelligence (AI). With this, POSCO now owns six of the 16 ultra-large blast furnaces worldwide.
According to POSCO on the 8th, Chairman Choi Jeong-woo will attend the lighting ceremony of the No. 3 blast furnace at Gwangyang Steelworks at 10:30 a.m. on the 10th and personally ignite the furnace. Key figures such as members of the National Assembly and the mayor of Gwangyang are expected to attend this event.
The lighting ceremony was scheduled for the 10th following the tradition of holding it on Tuesdays or Fridays, which symbolize fire (火) and metal (金). The ceremony time of 10:30 a.m. also holds great significance for POSCO, as the first blast furnace lighting ceremony at Pohang Steelworks was held at 10:30 a.m. on June 8, 1973. The first molten iron was produced on June 9, which is now designated as "Steel Day."
Through this refurbishment, the No. 3 blast furnace at Gwangyang Steelworks will transform from a 4,600㎥ capacity to an ultra-large blast furnace with a 5,500㎥ capacity. Crude steel production will also increase from 4.2 million tons to 5 million tons. Notably, the No. 3 blast furnace will be reborn as an AI-applied furnace. AI will take over all tasks previously performed by employees, from raw material quality inspection to molten iron temperature measurement. It is expected to reduce errors and achieve cost savings of 252 billion KRW over three years.
Late Park Tae-joon, Honorary Chairman of POSCO, and employees are celebrating on June 9, 1973, as the first molten iron flows from the blast furnace, following the firing ceremony of the No. 1 blast furnace at the Pohang Steelworks on June 8.
POSCO has been breaking records with each blast furnace refurbishment. With the refurbishment of the No. 3 blast furnace, POSCO has become a steel company owning six ultra-large blast furnaces. An ultra-large blast furnace is defined as having a capacity of 5,500㎥ or more. Notably, all six ultra-large blast furnaces in South Korea are owned by POSCO. Currently, countries owning ultra-large blast furnaces are South Korea (6), China (4), Japan (4), Germany (1), and Russia (1). POSCO also holds the record for the largest blast furnace in the world. Since the No. 1 blast furnace at POSCO Gwangyang Steelworks was reborn with a capacity of 6,000㎥ in 2013, the title of "the largest blast furnace in the world" has not been broken.
POSCO originally planned to hold the lighting ceremony for the No. 3 blast furnace on Tuesday, June 9. However, due to the impact of the novel coronavirus disease (COVID-19) which dampened steel demand, the restart was postponed by more than a month. As a result, some facilities at Pohang and Gwangyang Steelworks stopped operations and implemented paid leave for the first time since the 2008 global financial crisis. It is expected that once the No. 3 blast furnace at Gwangyang is fully operational, the temporarily suspended facilities will also resume operations. It is anticipated to take about five days from the lighting ceremony to full operation.
An industry insider explained, "Although POSCO’s automotive steel sheet sales fell by about 30% in April and May this year, postponing the restart of the No. 3 blast furnace at Gwangyang allowed a production cut of about 1.5 million tons, enabling a smoother adjustment compared to global steelmakers," adding, "The lighting ceremony was held based on the judgment that steel demand will recover starting in the fourth quarter."
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