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According to Yonhap News,
POSCO held a completion ceremony for its magnesium smelting plant in Okgye Industrial Complex located in Gangneung City, Gangwon Province.
The ceremony attracted about 150 people including Assistant Deputy Minister of Knowledge Economy Kim Jae-hong, Chairman of POSCO Jeong Jun-yang, Gangwon Governor Choi Mun-sun, Lawmaker Gwon Seong-dong, Gangneung Mayor Choi Myeong-heui and others.
POSCO invested a total of 97.7 billion won to build the 66,000 square meter-plant on a 462,000 square meter-site.
The plant will produce about 10,000 tons of magnesium, one of the top 10 precious materials in the world, for which Korea depend 100 percent on imports.
The plant will produce environmentally-friendly and high-quality magnesium ingots from domestic dolomites stored in mines of Gagnneung and Yeongwol.
Magnesium, 25 percent lighter than aluminum, is emerging as new high added value materials used for automobiles, cell phones, laptop computers and electronics components.
Korea has imported the whole 20,000 tons of magnesium annually from China.
POSCO will increase the annual production capacity of the plant from the current 10,000 tons to 40,000 tons in 2014 and to 100,000 tons in 2018 with the additional investment worth 200 billion won.
"We will maintain our strength in steel manufacturing with the establishment of the magnesium smelting plant, which will contribute to strengthening national competitiveness and boosting the regional economy," said Chairman Jeong.
Gangneung City plans to attract zinc smelting plants in neighboring regions to establish an industrial cluster to connect relevant industries.
The newly-built plant will enable Gangneung to develop into a major industrial hub for the nonferrous metal industry," said Mayor Choi.