OREANDA-NEWS. May 17, 2013. POSCO is materializing needle coke production for the first time in Korea.

POSCO held a ceremony in Gwangyang to celebrate the start of construction of a needle coke factory in Gwangyang, which is a joint collaboration with POSCO COMTECH, the chemical family company, and Japan`s Mitsubishi Corporation and Mitsubishi Chemical. CEO Chung Joonyang, Mitsubishi Corporation President Kobayashi Ken and Counsel Sasaki Mikio, Mitsubishi Chemical President Ishizuka Hiroaki, National Assembly Member Woo Yungeun, Ministry of Trade, Industry and Energy Chief of Industry Policy Lee Gwanseob, Gwangyang City Mayor Lee Seongung, and 200 others attended the event in hopes for a successful project.

Needle coke is a needle-shaped high carbon mass, formed after removing oil components from coal tar which is a by-product formed during high temperature dry distillation of coal, and is a high value added material used in electrode poles, semiconductors, LEDs, and secondary batteries for its electrical qualities. As a by-product of lump coke, 500,000 tons of coal tar produced annually are used, and this also allows for environmental issues to be mitigated.

However, due to difficult material supply and high early investment costs, as well as technical difficulties, it was difficult to enter the market and Korea relied purely on imports due to a lack of a manufacturer. POSCO has sold coal tar without processing until now, but expects approximately five times more in profit by producing and selling needle coke.

Also, by producing and supplying needle coke in Korea, an import replacement effect of 700 billion KRW is expected annually, contributing to the global competitiveness growth of Korea`s carbon material industry.

The needle coke factory will have an annual production scale of 100,000 tons, built on a 226,000? plot of land in Gwangyang City`s Donghoan, scheduled for completion in 2014. POSCO, especially through technical cooperation with Mitsubishi Chemical, plans to produce premium quality needle coke which is currently only produced by six companies globally.

CEO Chung Joonyang said at the ceremony, ``Through cooperation with Mitsubishi Corporation and Mitsubishi Chemical, which are globally leading companies in the coal chemical field, we will contribute in the development of the industry ecosystem and produce the world`s best premium level needle coke.``

Moving forth with the start of needle coke, POSCO will produce resources out of steelworks by-products and continually find high value added businesses to find direction to grow as a global carbon material specialized company.