The plant's main product is Giga steel, an ultra-high-strength steel that can withstand loads in excess of 100 kg per square metre. Using Giga steel, vehicle components can be made thinner without compromising strength, resulting in a reduction in weight.
POSCO expects steel to be widely used as a material for electric vehicles, which are typically about 25 per cent heavier than internal combustion engine vehicles. Therefore, POSCO has made a new investment in CSPC, which is located next to the electric vehicle factories.
With this investment, CSPC purchased a special Giga steel cutting machine with an annual capacity of 135,000 tonnes and a 1,600 tonne press. Having specialised equipment for the new steel, CSPC is able to cut the material in the first step as well as produce and supply semi-finished products for automotive components.
CSPC plans to actively fulfil new orders for Giga Steel in cooperation with major local suppliers of automotive components. The goal is to double gigasteel sales to double current levels by 2027, accounting for about 6% of CSPC's total sales.
"By providing the highest quality products and services at CSPC and 12 other integrated processing centres in China, we will strive to become the leading green materials company of the future in the rapidly changing Chinese automobile market, which is focused on green vehicles," said Sun Yong, President of POSCO China.
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