FINEX Exports
With untiring research from 1992, POSCO succeeded in commercializing FINEX technology in 2007. In 2013, the company signed a memorandum of agreement (MOA) in FINEX technology with China’s Chongqing Iron & Steel Group, beginning the first export. The next year, it signed a memorandum of understanding (MOU) with India’s Mesco Steel to sell its idle FINEX 1 plant in Pohang, North Gyeongsang Province, to the Indian steelmaker. This year, the South Korean steel giant is actively discussing export with nine regions from six countries, expanding to not only Southeast Asia but also the Middle East.
As POSCO Chairman and CEO Kwon Oh-joon said at the beginning of the year, “The company will establish a technology platform business strategy, which is based on POSCO’s best technologies, including FINEX,” its business seems to shape up nicely.
As of Oct. 21, POSCO is seeking to export FINEX technology to nine regions. The region which shows the most progress is China’s Chongqing City. Since both the Chinese and Korean governments approved the building of a 3 million ton FINEX steel mill with Chongqing Iron & Steel Co., the company is getting ready to construct the plant in earnest. In Aug., POSCO signed an MOA with India’s steel firm Uttam Galva Steel, Ltd. to establish a 1.5 million ton steel mill. The company also signed an MOU with Vietnam in June and a country in the Middle East recently. So far, it has signed MOAs or MOUs, which are just a step before the actual contract, with five regions in four countries. In addition, the discussions for export with two regions of India, Kazakhstan, and Indonesia have been progressing admirably.
This is largely due to the fact that POSCO’s FINEX technology reduces not only construction and maintenance costs but also pollutant emissions compared to conventional steel making process. The technology lowers investment and production costs by eliminating unnecessary steps, like crumpling iron shavings. Compared to blast furnaces, it reduces the emissions of sulfur oxides by 40 percent, nitrogen oxides by 15 percent, and dust scattering by 71 percent. Therefore, the technology can significantly reduce global warming and environmental pollution.
Since other competitors have failed to commercialize a new iron-making process, the FINEX technology is actually the only alternative. In a bid to protect the FINEX technology, POSCO has applied for 58 patents in Korea and 20 other countries. Also, the company restricts visitor access to maintain security.
POSCO also has an expectation for exporting compact endless cast rolling mill (CEM) technology. CEM is a technology that integrates the steelmaking, continuous casting, and rolling processes into one to reduce energy consumption by 30 to 40 percent than existing technology. The company signed a formal contract with Germany’s SMS Group in early July for technology license and joint marketing. When FINEX connects with CEM, the economic feasibility dramatically improves from the process of iron mold production to hot rolled coil production. Accordingly, the demand of the technology is expected to grow.