(LEAD) POSCO completes S. Korea's largest electric arc furnace to cut carbon emissions

SEOUL, June 17 (Yonhap) -- South Korean steelmaker POSCO Co. said Wednesday it has completed construction of an electric arc furnace (EAF) on the nation's southern coast as part of efforts to advance its lower-carbon steelmaking.

The nation's largest EAF, with an annual production capacity of 2.5 million tons, was built in Gwangyang, about 360 kilometers south of Seoul, following more than two years of construction and an investment of about 600 billion won (US$396.7 million).

Unlike conventional steelmaking processes that rely primarily on iron ore and coal, EAFs recycle scrap metal and can reduce carbon emissions by up to 75 percent compared with blast furnaces, according to the company.

POSCO said it is also working on hybrid steelmaking technologies, such as mixing molten iron from blast furnaces and EAFs to maintain steel quality while reducing emissions, under a goal of mass-producing automotive steel sheets and electrical steel by 2030.

Prime Minister Kim Min-seok celebrated the EAF's completion, saying it represents the future of steelmaking as it is evolving from a high carbon emission industry to an environment-friendly one. Kim also said he believes POSCO will lead carbon neutrality efforts in the global steel industry.

"Steel was the rice for the Republic of Korea's industry," Kim said during a congratulatory address, referring to the importance of the industry in South Korea's economic rise. "We will provide full policy support to help the domestic steel industry secure world-class technologies and production infrastructure."

POSCO Co.'s flag is hung at its headquarters in southern Seoul in this photo provided by the steelmaker. (PHOTO NOT FOR SALE) (Yonhap)