South Korea: new contract with steelmaker

October 17, 2011

The steel industry has played a substantial role in turning South Korea into a world leader in the electronics, automotive and other advanced manufacturing fields.

Air Liquide has just signed a contract with Posco E&C, the Engineering and Construction division of Posco, to design and build two very large Air Separation Units (ASU), each of which will have an oxygen production capacity of 3,750 tonnes per day. This is the largest production capacity designed so far for a steelmaker by Air Liquide. Oxygen is used to transform cast iron into steel.

These two new units will be installed at Posco’s Gwangyang and Pohang sites in South Korea. The oxygen they produce will enable the Gwangyang site to support the Posco Group’s increase in global steel production. The second unit will meet growing demand for oxygen in connection with the construction of a second steel plant (with a production capacity of 2 million tons per year) on the Pohang site.

Posco is the largest integrated steel producer in the country and one of the most important in the world. Founded in 1968 and privatized in 2000, Posco has led the Korean steel industry for more than four decades. In 2010, Posco produced 33.7 million tons of crude steel.

Air Liquide has been working with Posco for more than 25 years, and has already supplied it with 17 ASUs on these two sites in South Korea. The Group was one of the steelmaker’s designated “Best Suppliers” of 2010.

François Darchis, Senior Vice-President in charge of Engineering and Construction, Research and Technology and a member or Air Liquide’s Executive Committee, declared: “We are proud to have been able to contribute to Posco’s development for more than 25 years. Air Liquide’s strong historical relationship with Posco and mutual trust are major factors supporting our fruitful collaboration today. A true understanding of our customers’ needs and constraints lies at the heart of Air Liquide’s strategy of offering customer-focused cutting-edge technology solutions.”


Air Liquide Engineering & Construction

Air Liquide’s Engineering and Construction teams design, develop and build gas production units for the Group or for its customers. It comprises 3,500 employees, spread over 15 Engineering & Construction centers that cover its major markets.

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