Steel Technology
The world’s third-largest steel maker is expected to export its FINEX technology to China.
POSCO signed a memorandum of agreement (MOA) on September 22 to construct a FINEX steel mill of an annual production capacity of 3 million tons with Chongqing Iron and Steel Co. (CISC) in China.
In July 2011, both sides signed a Memorandum of Understanding (MOU) for the FINEX project. After the signing of the MOU and a 2-year feasibility study, they finally reached the agreement.
It appears that the two companies will be able to conclude this contract, after the Chinese government’s approval on the 50-50 joint venture and the Korean government’s authorization to export FINEX technology by the end of next year.
POSCO started to research the FINEX method in 1992, succeeding in the commercialization of a FINEX plant with an annual capacity of 1.5 million tons in 2007. Currently, an annual 2 million ton FINEX facility is being constructed.
FINEX is a next-generation iron-making process technology that enables a decrease in investment costs by skipping the coking process and sintering process of traditional steelmaking, which also reduces air pollutants that come from the production process. Compared to the blast-furnace method, this eco-friendly method reduces sulfur dioxide, nitrogen dioxide, and fugitive dust emissions by 97%, 99%, and 72% each.
This deal permits POSCO the new business model of receiving license fees and exporting technology, going beyond steel production and sales.
Founded in 1893, CISC is a state-owned enterprise in Chongqing. The Chinese company is the only integrated steel mill in the region with 22 subsidiaries. It can annually produce 6.5 million tons of crude steel. The company plans to try a new direction for its business through the joint work with globally-competitive POSCO.
To meet the rapidly growing auto industry needs in Chongqing, POSCO and CISC also signed a MOU to review a joint project for automotive steel sheet production.