On Dec. 27, POSCO Holdings announced that it signed a joint venture agreement with China’s Zhongtai Cryogenic Technology on Dec. 22 for the production of high-purity rare gases. POSCO Holdings and Zhongtai will hold 75.1% and 24.9% in the joint venture, respectively.
Zhongtai, listed on the Shenzhen Stock Exchange, specializes in gas-related equipment manufacturing and engineering. The company possesses specialized technology in gas production facilities, including rare gas production equipment and air separation units.
In collaboration with Zhongtai, POSCO Holdings plans to establish a high-purity rare gas production plant capable of producing 130,000 normal cubic meters (Nm3) annually. This capacity is sufficient to supply 52% of the domestic semiconductor market.
The factory, set to be constructed on the Donghoan site in Gwangyang by 2024, aims to commence commercial production by the end of 2025. High-purity (99.999%) rare gases, such as neon, xenon, and krypton, are used in advanced industries like semiconductors, displays, and satellite propellants. These gases exist in minute quantities in the air and require large-scale air separation units for production. Until now, domestic companies have primarily imported rare gases from countries such as the United States, China, and Ukraine due to these production complexities.