[Future Business Forum] "POSCO Blast Furnace to Operate Smoothly with AI Similar to Human Body"

Interview with Lee Deokman, Head of AI Research Center at POSCO Holdings
Building Data Infrastructure
Driving Stability and Carbon Reduction Effects

Lee Deok-man, Head of AI Enterprise Research Center, POSCO Holdings AI Robot Convergence Research Institute (Provided by the individual)

Blast furnaces in steel mills, which operate at temperatures exceeding 1500 degrees Celsius, are being transformed by artificial intelligence (AI) technology. The AI technology of POSCO, a leading steel company in Korea, enhances operational stability even in high-temperature environments and is also effective in reducing carbon emissions.

On the 24th, Lee Deok-man, head of the AI Enterprise Research Center at POSCO Holdings' AI Robot Convergence Research Institute, explained in an interview with Asia Economy, "A blast furnace is similar to the human body. The human body maintains good health when the food consumed is fresh and digestion is efficient." He added, "Similarly, the raw materials fed into the blast furnace must be of high and consistent quality, and internal reactions must be well managed for molten iron to be smoothly discharged. AI plays a role in ensuring the blast furnace functions smoothly."

Since the mid-1990s, POSCO has built data infrastructure at its Pohang and Gwangyang steelworks. Recognizing the importance of data accumulation at the time, they established systems to collect necessary operational and management data and built dedicated data centers at the Pohang and Gwangyang steelworks for management purposes. POSCO aims to combine AI technology with steel industry data to improve productivity, minimize waste, enhance work efficiency, and ensure safety.

The AI Robot Convergence Research Institute, where Lee is based, serves as the R&D control tower for the POSCO Group. It establishes AI and robot convergence technology strategies and builds internal and external cooperation systems. The institute secures talent in AI and robotics to tackle various company challenges and research, and collaborates with business units to apply AI technology. As a result of these efforts, in 2019, POSCO's Pohang Steelworks was selected as a 'Lighthouse Factory' by the World Economic Forum. Lighthouse Factories are factories that will innovatively lead the future of global manufacturing.

Lee further explained, "Raw materials that were previously inspected manually are now automatically measured and managed by AI through image analysis to ensure appropriate size and moisture levels." He added, "We developed technology to track and control data from conveyor belt transport lines spanning tens of kilometers in real time, ensuring high-quality coke (fuel made by processing coal) and sintered ore (processed iron ore raw material) are supplied to multiple blast furnaces."

AI technology is also effective in reducing carbon emissions, a pressing challenge in the steel industry. Lee said, "(AI technology) increases the energy efficiency of equipment and processes and optimizes the use of raw materials and logistics flow to prevent unnecessary resource waste." He continued, "It predicts machine failure points to enable preventive maintenance, helping machines use energy more efficiently. AI is also utilized in process simulations for manufacturing method transitions such as hydrogen reduction steelmaking, which is considered the future of steelmaking."

The advanced AI technology developed through the steel sector is also being applied to another core business of the group, the secondary battery materials business. Lee explained, "Digital infrastructure capable of collecting, analyzing, instructing, and controlling data, along with image-based quality measurement technology from steelmaking, is applied to analyze the condition of crucibles that contain secondary battery materials." He added, "Automation of operations is being achieved using robots and AI, and it is also used in tasks such as demand forecasting."

Lee will participate as a speaker at the Future Enterprise Forum hosted by Asia Economy on the 22nd of next month, where he will introduce POSCO Group’s AI application cases. The forum will be held at the Sapphire Ballroom of Lotte Hotel in Sogong-dong, Jung-gu, Seoul.