OREANDA-NEWS. October 03, 2013. POSCO signs MOA with China`s Chongqing Iron and Steel Company to construct a FINEX integrated steelworks... annual 3 million ton scale

POSCO`s `FINEX method` which is its self-developed next-generation steelmaking technology, will be exported overseas.

On September 22nd, POSCO signed an MOA with Chongqing Iron and Steel Company, a state-run company operated by China`s city of Chongqing, to construct an annual 3 million ton scale FINEX integrated steelworks. Chongqing Mayor Huang Qifan and CEO Chung Joonyang attended the signing ceremony, while Chongqing Iron and Steel Company President Zhu Jianpai and POSCO President Kim Junshik signed the MOA.

Chongqing Iron and Steel Company was established in 1893, and is a state-run company with the city of Chongqing holding 100% of shares, with 22 subsidiaries and an annual 6.5 million ton steel production capacity.

Chongqing is the center of China`s western great development and has marked higher economic growth rates than China`s average in the past few years, and is expected to continue to grow in double-digit rates leading to high demand in steel compared to other regions.

With the signing of the MOA, POSCO and Chongqing Iron and Steel Co. will each invest in 50% of shares equally to construct a 3 million ton scale FINEX integrated steelworks. This is the result of a feasibility review that was carried out for approximately two years since signing the FINEX collaboration MOU in July of 2011. The main agreement is expected to be signed by the end of next year after ratification by the government of China and approval of technology export by the government of Korea.

FINEX was successfully commercialized at a 1.5 million ton scale by POSCO in 2007 after 15 years of research starting in 1992. Currently, a 2 million ton scale New FINEX Plant is in construction within Pohang Steelworks. The technology has changed the general steel industry`s paradigm where `melted iron is produced in the furnace,` making its mark in world steelmaking history.

FINEX is economical as it reduces investment costs compared to general furnaces by removing the coke and sintering processes which preliminarily process the materials in the existing furnace, and is environmentally friendly by reducing pollutants such as sulfuric oxides (SOx) by 97%, nitric oxides by 99%, and fugitive dust by 72% compared to general furnaces.

Particularly, more than 80% of the iron ore can be used in powder form of less than 8mm in diameter which is more than 20% lower in cost, reducing production costs as well.

Meanwhile, in addition to the MOA, POSCO and Chongqing Iron and Steel Company signed an MOU to review cooperation in an automobile cold-rolled project in response to the fast-growing automobile industry in the Chongqing region.