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Annual production scale of 700,000 tons replaces imports of high quality wire rods

With the completion of Pohang Steelworks Wire Rod Mill 4 and commencement of production of high quality wire rods, POSCO has gone a step higher as a `high quality automobile part specialized steelworks.` On May 28th, at Pohang Steelworks held the completion ceremony of the 700,000 ton annual production scale Wire Rod Mill 4. By expanding with this wire rod mill, POSCO is now equipped with an 2.8 million ton annual production scale wire rod production system, securing the world`s best quality, and is ranked among the top 3 in scale, and is expecting to contribute to strengthening the competitiveness of automobile parts companies. Wire rods are used as a material for nails, wires, screws, bolts, nuts, bearings, springs, and wire ropes, and are sold mainly to automobile parts companies. More than 1 million tons of the 3.2 million ton demand currently need to be imported.

POSCO`s Wire Rod Mill 4 will produce high quality products that are differentiated from imported materials including extremely high strength spring steel, and high strength wires for deep sea development which steel companies of China find difficult to produce, and expects 27 billion KRW in annual import replacements by expanding supply amounts of automobile lightweight parts and high-functional parts which are rapidly increasing in demand. POSCO will particularly produce hot processing omission steel which doesn`t require hot processing, contributing to cost reduction of major client companies such as KISWIRE.

In his commemorative speech, CEO Chung Joonyang who attended the completion ceremony remarked, ``I hope this mill will become specialized as a high quality wire rod factory that can produce products meeting the demand of clients and become the world`s best wire rod production base.``