Gwangyang City Signs 10 Billion Won Investment Agreement with Aekyung Special Coatings Co., Ltd.

Construction of a Production Plant for Insulation Coatings for Non-Oriented Electrical Steel Sheets, a Core Material for Electric Vehicles

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] On the 22nd, Gwangyang City in Jeonnam announced on the 27th that it signed an investment agreement with Park Tae-han, CEO of Aekyung Special Coatings Co., Ltd., at the city hall reception room to establish a production plant for insulation coating agents for POSCO's non-oriented electrical steel sheets on a 5,000㎡ site within the national industrial complex.

The plant is scheduled to be completed in the first half of 2023, aiming to start production in June of the same year, with an annual production capacity of 7,000 tons of insulation coating agents.

This agreement is closely related to POSCO Gwangyang Steelworks, which recently began construction of a non-oriented electrical steel sheet plant (with an annual capacity of 300,000 tons) in Gwangyang by investing 1 trillion KRW due to the increasing demand for eco-friendly electric vehicles. It is expected to contribute to revitalizing the local economy by absorbing idle local labor and creating employment.

With this, the city has laid the groundwork to become a hub for producing eco-friendly electrical steel sheets, a key material for carbon-neutral electric vehicles.

Jung In-hwa, Mayor of Gwangyang City, said, “We are grateful to Aekyung Special Coatings Co., Ltd., which is leading the electric vehicle materials market, for deciding to make generous investments to produce insulation coating agents for electrical steel sheets.”

He added, “We sincerely hope that Aekyung Special Coatings Co., Ltd. will join forces with Gwangyang City and POSCO Gwangyang Steelworks to lead the core material industry of eco-friendly electric vehicles, a future new growth engine.”

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr