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Synergy creation` from uniting the core capabilities of POSCO family companies 

Enables supply of customized products to global automobile companies 

POSCO completed the new hot rolling plant No.4 in Gwangyang with only its own engineering. POSCO solidified its place as a global steel company by completing the steelmaking, continuous casting and rolling process using 100% of its own engineering technology, as sourced from POSCO family companies, covering everything from design to purchase, construction and production. 

POSCO held a building completion ceremony for the establishment of hot rolling plant No.4 on October 31st at the Gwangyang Iron Co., attended by approximately 200 participants including CEO Kwon Oh-joon, main client companies and suppliers, and the presidents of POSCO family companies. 

CEO, Kwon Oh-joon commented in his commemorative remarks that, ``POSCO will firmly maintain its unrivaled status in the high-quality automotive steel and high-functional rolled steel market with the completion of hot rolling plant No.4 in Gwangyang. As such, it will solidify its reputation as the best `solution house` for customers.`` 

Unlike existing construction methods that depend on foreign techniques, the hot rolling plant No.4 in Gwangyang was completed and developed entirely from Korean technology from the initial design stage. Indeed, right from the steel converter, continuous casting machine and rolling machine along with software facilities such as controlling and electrical system, everything was developed with the POSCO family, including the POSCO Engineering & Construction and POSCO ICT Company. 

First, in the steelmaking and continuous casting process, a new type of steel converter and continuous casting machine were introduced exclusively for high-quality automotive steel, but with all the advantages of existing steel converters. While unit operations such as cooling, scarfing, surface inspection and grinding were previously processed in a disperse way, the hot rolling plant No.4 changes that. Indeed, it greatly reduces the supply time between the continuous casting process and rolling process by delivering materials straight into a hot rolled status, without cooling process in the middle, from the time completed slab casting to hot rolling heat. 

By installing the evaporating cooling system (ECS) in the heating furnace for hot rolling, 23.4 tons of steam are produced each hour, with 30% used in the hot rolling plant No.4 and the rest converted to energy for other plants. As such, it reduces costs by 6 billion won per year. 

By securing linear characteristics by adapting the high stiff rolling machine in the final rolling stage, it is possible to produce high strength and double width thin rolling steel plates. In addition, the new plant enhances the quality of high graded steel a step further. 

In addition, it reduces the possibility of a coil separation that might otherwise occur during coil transport, as well as sharply shortening the time required for transport by introducing a pallet type conveyer, rather than the chain type. 

POSCO is scheduled to supply most of the 3.3 million tons per year produced in the hot rolling steel plant No.4 to global automobile companies as customized products delivered to automotive steel production corporations overseas. It is expected that the products for sale in Korea will be very limited.

In particular, as the hot rolling steel plant No.4 can provide a differentiated and professional service customized to clients` requirements, with ranges of 1.2~22? thickness and 700~1950? width, it is expected that the new plant will enhance the competitiveness of existing clients, particularly global automobile companies. 

POSCO, following the completion of the hot rolling plant No.4, plans to participate in the initial development of new cars by global automobile companies and strengthen its customer-oriented solution marketing by actively leading automobile development. 

• [Editor:Phillip.Feng]