JUNE 2014

POSCO E&C INNOVATION & TECHNOLOGY
www.poscoenc.com
Newsletter from
ISSUE 2
Plant Engineering & Construction Division
JUNE
2014
With innovative state of the art technology, POSCO E&C continuously strives to improve
its capabilities in the CGL industry. Combined with the experience of numerous successful
projects, POSCO E&C is capable of providing innovative solutions from commercial steel
to advanced high strength steel for various needs.
POSCO MEXICO No.2 CGL
Leading the Future
of CGL with
Innovative Technology
2.5 Million TPA Minimill
in Oman with PEPCOM
Solution
Planning Phase of PEPCOM Strategy
Project
Compatibility
ISSUE 2 JUNE 2014
• Strategy
• Capability
• Local Information
POSCO E&C Takes
the First Step
in Russia.
Market
Research
• Estimate Demand
• Market Share
• Competitors
• Price Forecast
• Product Quality
Technical
Assessment
Financial
Capability
• Production Plan
• Technology
• Equipment
• Site Condition
• Investment Cost
• Financial Model
• Financing Plan
Expand Your
Horizon With
PEPCOM Solution
- Planning
Investment
• Detailed
Investment Plan
& Execution
02
ISSUE 2 - JUNE 2014
POSCO E&C Total Solution Provider
Leading the Future of CGL with
Innovative Technology
Rayong, Thailand –On April 18th 2014,
POSCO Engineering & Construction
was awarded an EPC contract for the
construction of a new continuous
galvanizing line (CGL) automotive sheet
plant in Rayong, Thailand by POSCO
Thailand Coating Steel (TCS) Co. Ltd.
POSCO E&C will be cooperating with 2
other POSCO subsidiaries: POSCO ICT
and POSCO Engineering as a consortium
to deliver the project.
In a move to strengthen its presence
in the automobile industry of Southeast
Asia, POSCO TCS sought POSCO
E&C’s expertise to design and deliver
this project in the shor test time
possible. With more than 20 projects to
its name e.g. Altamira No. 1 & 2 CGL
Reference List
Capacity
Completion
POSCO No.2 CGL, Altamira, Mexico
Project
500,000 T/Y
2013
POSCO CGL, Guangdong, China
450,000 T/Y
2012
POSCO CGL, Maharashtra, India
450,000 T/Y
2012
Union Steel, No.5 CGL, Busan, Korea
370,000 T/Y
2009
PROSPERITY PGL, Kaoshiung, Taiwan
500,000 T/Y
2009
POSCO No.2 CGL Revamping, Gwangyang, Korea
430,000 T/Y
2008
POSCO No.6 CGL, Gwangyang, Korea
400,000 T/Y
2006
POSCO No.1 CGL Revamping Gwangyang, Korea
300,000 T/Y
2006
POSCO No.2 CGL, Altamira, Mexico
500,000 T/Y
2013
POSCO CGL, Guangdong, China
450,000 T/Y
2012
POSCO CGL, Maharashtra, India
450,000 T/Y
2012
Union Steel, No.5 CGL, Busan, Korea
370,000 T/Y
2009
PROSPERITY PGL, Kaoshiung, Taiwan
500,000 T/Y
2009
POSCO No.2 CGL Revamping, Gwangyang, Korea
430,000 T/Y
2008
POSCO No.6 CGL, Gwangyang, Korea
400,000 T/Y
2006
POSCO No.1 CGL Revamping Gwangyang, Korea
300,000 T/Y
2006
General Trade CGL, thai Binh, Vietnam
30,000 T/Y
2005
POSCO No.5 CGL, Gwangyang, Korea
450,000 T/Y
2005
Prosperity CGL, Kaoshiung, Taiwan
200,000 T/Y
2005
Sino Leading No.1&2 CGL, Changshu, China
250,000 T/Y
2005
POSCO No.2 CGL, Pohang, Korea
300,000 T/Y
2004
KISCO CGL, Kunming, China
150,000 T/Y
2004
NAKISCO CGL, Hochiminh, Vietnam
30,000 T/Y
2004
PCCS CGL (Revamping), Dalian, china
150,000 T/Y
2004
POSCO PGL (Revamping), Gwangyang, Korea
580,000 T/Y
2002
POSCO No.1 CGL (Revamping), Pohang, Korea
200,000 T/Y
2000
POSCO No.4 CGL, Gwangyang, Korea
450,000 T/Y
2000
MPSC CGL, Yangon, Myanmar
30,000 T/Y
1998
ZPSS CGL, Zhangjiagang, China
100,000 T/Y
1998
Dongkuk HGL, Pohang, Korea
150,000 T/Y
1997
in Mexico, Guangdong CGL in China
and Maharashtra CGL in India, etc.
POSCO E&C has vast experience in
the construction of CGL plants thereby
marking POSCO E&C as one of the
leading contractors for the construction of
CGL plants in the CGL industry.
The plant will produce galvanized
steel sheets which will be used in the
assembly of automobiles and will
have an annual production capacity of
400,000 tons. POSCO E&C schedules to
complete basic engineering works later
this yearand enter detailed engineering
stage early next year. The construction is
expected to start at the end of this year
and completion of the project is expected
in late 2015 or early 2016.
POSCO E&C Takes
the First Step in Russia.
POSCO Engineering
&Construction and NLMK
Group (NLMK), Russia’s
leading manufacturer
of steel and HVA(High
Va l u e A d d e d ) s t e e l
products, have signed
a general agreement of (From left) Sergei Filatov, NLMK Managing Director
and Deuk Hee Lee, Senior Vice-President of
strategic cooperation to POSCO E&C
expand business activity
on mutually beneficial basis in the sphere of projects for
the construction of new continuous hot-dip galvanizing
line and continuous color coating line, upgrading of the
existing blast furnace and sinter plant as well as the
issues related to operational efficiency and quality control
improvement envisaged by NLMK’s investment programs.
Projects to be implemented as part of the agreement
are aimed at boosting the efficiency of technological
processes, including hot-end operations, controlling
the quality of products at NLMK’s main production site,
implementing best practices and advanced technologies,
for instance, for pre-painted steel production, and
mastering new types of HVA products. POSCO
Engineering & Construction and LipetskyGipromez (a
design institute that is part of NLMK Group) agreed on a
long-term partnership and are currently discussing the
specific forms and programs of cooperation in providing
high quality design services on the Russian market.
POSCO E&C Total Solution Provider
03
ISSUE 2 - JUNE 2014
2.5 Million TPA Minimill in Oman with PEPCOM Solution
Signing representatives: Director of Sun Metals LLC, Executive Vice-President of POSCO E&C,
President of Sojitz Corporation and Korean Ambassador.
ISSUE 2 JUNE 2014
POSCO Engineering &Construction
has recently signed $ 400 million contract
for the collaboration among Oman Sun
Metals LLC, POSCO E&C and Sojitz
Corporation to construct a 2.5MPA
capacity minimill in Sur, Oman. Since
POSCO E&C was determined to play
a key part in the execution of a major
steel plant after this project was defined,
the project has been materialized and
become a great chance to contribute to
Oman’s socioeconomic development.
The owner, Oman-based Sun Metals,
LLC, signed two separate agreements
for the project with POSCO E&C and
Japanese trading companySojitz
Corporation. As apart of this contract,
POSCO E&C will be in charge of
the Project Planning, Engineering,
Procurement, Construction and Operation
& Maintenance (PEPCOM) while Sojitz
Corporation will undertake the finished
product as well as supplier of feedstock.
Through the master engineering from
the planning stage and its own design
ability, POSCO E&C will provide the
optimized layout as well as turnkey
basis process from competitive EAF
to tolling mill for the project. Moreover,
Korean steel experts will be dispatched
to continuously provide operation
&maintenance service after the
completion of the plant construction
and this will help train and manage
local employees and will target on early
production stabilization in the end.
POSCO E&C has been providing
its customers with complete PEPCOM
solution in collaboration with many
world-class competitive steel producers
and this makes POSCO E&C one of the
most efficient and economical contractor
in the world.
Plant to Produce World`s
Best-quality CRC for Automobile
Completed in India
First Brick Ceremony
for Coke Plant at Brazil CSP
Construction Site
On June30th 2014, POSCO Engineering & Construction
completed the construction of cold rolling mill complex in
Vile Bhagad industrial complex, Maharashtra, India. POSCO
E&C, combined with its high level technologies of pickling line
and continuous annealing line, has proven EPC management
capabilities as the total solution provider.
With the annual production capacity of 1,800,000 ton, the
plant will provide high quality cold rolling coils which will be used
to produce galvanized steel for automobile. Supplying most
equipment for the mill through localization successfully, POSCO
E&C was able to satisfy the client in terms of the price and
the quality of the plant. Clients in India now can expect to be
provided with the world-class steel mills at the most competitive
price from POSCO E&C’s successful projects accomplishments
in Indian steel industry.
The first brick ceremony for coke plant took place on April
23rdin the presence of CEO of CSP, Mr. Sergio Leite, President
of POSCO E&C Brazil, Mr. Ahn, and several other executives of
the partner companies.
The main structure of the coke plant, called battery will
be installed where the raw coal used in the blast furnace is
exposed to high temperatures and turns into coke.
According to Mr. Ahn, “POSCO E&C has achieved one ofthe
important milestones of this project today maintaining thesafety
and environment norms, and it would be great to see thesame
dedication and efforts in the future, too.” This mega-sizedCSP
integrated steel project in Brazil is in progress following the
original schedule.
04
ISSUE 2 - JUNE 2014
PEPCOM
INTRODUCTION
02
POSCO E&C Total Solution Provider
Expand Your Horizon With PEPCOM Solution
OF 04
In the previous edition of POINT
released in March 2014, the overall scope and advantages of
POSCO E&C’s PEPCOM Solution
(Planning, Engineering, Procurement,
Construction, Operation &
Maintenance) strategy was elaborated. In this edition, the comprehensive
essence of “P (Planning)” of PEPCOM
will be explained, followed by EPC
& O(&)M in the next editions respectively. Over 4 decades of experience
in the steel plant projects have made
POSCO E&C an optimized project
planner for Greenfield, Brownfield or
Revamping projects. Planning phase
of any steel plant project is divided
into sub-categories such as project
compatibility, market research, technical assessment, financial capability
followed by investment.
Once project compatibility report
and market research are done by the
prospective clients, POSCO E&C provides the technical assessment service to the clients, which includes
equipment specification, technology
know-how, site condition, and esti-
Planning Phase of PEPCOM Strategy
Project
Compatibility
• Strategy
• Capability
• Local Information
Market
Research
• Estimate Demand
• Market Share
• Competitors
• Price Forecast
• Product Quality
Technical
Assessment
Financial
Capability
• Production Plan
• Technology
• Equipment
• Site Condition
• Investment Cost
• Financial Model
• Financing Plan
mated investment cost according to the
production plan of the clients. Based on
POSCO E&C’s over 40 years of enriching experience and technical support,
the project will be materialized under the
optimized cost and schedule.
With strengthening the foundation of
the project through technical assessment by POSCO E&C, the viability of the
project can be enhanced once again.
POSCO E&C can facilitate the financing
arrangement through equity investing in
Investment
• Detailed
Investment Plan
& Execution
the construction portion of the project.
Recently, POSCO E&C participated in
the flat rolling mill project of CSS as
the construction investor and helped
the clients recruit more investors.
After the extensive planning, final
investment decision is made by the
client, then followed by EPC planning
and execution. Since POSCO E&C is
involved from the planning phase, it
ensures cost competitiveness and efficient operation for the project.
POSCO E&C presents the EPC capabilities
and new technologies at AISTech 2014
From May 5th to 7th 2014, POSCO
E&C participated in the International
AISTech Conference in Indianapolis,
USA, the premier technology event for
steel industry which provides a global
prospective on the worldwide technology
and engineering expertise.
During the conference, POSCO
E&C’s core steel technology such as
FINEX, CEM and complete PEPCOM
capabilities were presented via the
presentation and displayed materials at
the exhibition booth. In addition, engineers
and researchers from POSCO delivered
several presentations regarding FINEX
process during the session.
Numerous visitors showed high interest
and gained a better understanding about
POSCO E&C and its core technologies
through their visits. Known to many
international reputed steel producers,
AISTech was one of the most meaningful
trade events which allowed POSCO E&C
to present and display core technologies
and capabilities associated with the steel
manufacturing industry.
NEXT EVENT
MMMM 2014
(Minerals Metals Metallurgy & Materials)
Conference & Exhibition
September 4thto 7th, 2014
Location
PragatiMaidan, New Delhi, India
CONTACT
Name
HO SEONG LEE / Director
POSCO E&C Tower 1,
241 Incheon tower-daero, Yeonsu-Gu,
Incheon, 406-732, Korea
E-mail plant_biz@poscoenc.com
Phone 82 32 748 2365