Company DigestCompaniesLast updated: 8 September 2026

POSCO Breaks Ground on 480 Billion Won No. 8 Continuous Galvanizing Line at Gwangyang Works

South Korean steelmaker POSCO has broken ground on the No. 8 Continuous Galvanizing Line (8CGL) at its Gwangyang Works in South Jeolla Province, an investment of 480 billion won (about US$357–359 million). The new line will produce 450,000 tonnes per year of hot-dip galvanized steel sheet for automotive outer panels, with commercial production scheduled to begin in 2028.

Steel coils on a galvanizing production line

Groundbreaking at Gwangyang Works

SEOUL, September 8, 2026 — POSCO said it has started construction of the No. 8 Continuous Galvanizing Line (8CGL) at its Gwangyang Works in South Jeolla Province. The groundbreaking took place on the same day as the announcement, and the project was presented in a company statement published in the corporate newsroom at https://newsroom.posco.com/.

The investment in the new facility totals 480 billion won, equivalent to roughly US$357–359 million. It is the first dedicated galvanizing line POSCO has launched since 2017, and its purpose is to expand the company's supply of hot-dip galvanized steel sheet used for the outer panels of automobile bodies.

What the No. 8 line will produce

According to the company statement, the 8CGL is designed around a single product family — hot-dip galvanized steel sheet for automotive outer panels. The key parameters of the project are:

annual capacity of 450,000 tonnes of hot-dip galvanized steel sheet;
end use: outer panels of automobile bodies;
commercial production start: 2028;
location: Gwangyang Works, South Jeolla Province;
status: the first dedicated galvanizing line launched by POSCO since 2017.

Hot-dip galvanizing coats steel sheet with a layer of zinc that protects the metal against corrosion, which is why galvanized sheet is a standard material for exposed body surfaces of cars. The Gwangyang line concentrates on exactly this product niche.

Capacity: from 4.5 million to 4.95 million tonnes

POSCO already operates seven continuous galvanizing lines with a combined capacity of 4.5 million tonnes per year. The addition of the 8CGL changes the company's combined galvanizing capacity as follows:

seven existing continuous galvanizing lines — 4.5 million tonnes per year;
No. 8 Continuous Galvanizing Line (8CGL) — an additional 450,000 tonnes per year;
combined capacity after completion — 4.95 million tonnes per year.

The 450,000-tonne addition is modest against the existing base, but it is fully dedicated to automotive outer-panel grades — the segment the company describes as high-end auto steel.

"A strategic investment": management commentary

POSCO President Lee Hee-geun described the project as "a strategic investment aimed at strengthening our future competitiveness amid a rapidly changing global steel ecosystem." In the company statement, the investment was also presented as a step to improve POSCO's cost and technological position in high-end automotive steel.

Why automotive outer panels

Outer-panel sheet belongs to the high-end auto steel segment in which the company intends to strengthen its position. By dedicating an entire line to this grade family from 2028, POSCO ties the Gwangyang expansion directly to the competitiveness goals set out by its president.