POSCO Air Solution, the industrial gas subsidiary of POSCO Group, has inaugurated its high-purity rare gas production plant at the Donghoan site of the Gwangyang Works, marking a major milestone in the country’s efforts to strengthen domestic production of critical materials for advanced industries. The commissioning ceremony was held alongside the completion of POSCO’s Electric Arc Furnace (EAF) project and was attended by nearly 100 guests, including POSCO Holdings Chief Executive Officer Chang In-hwa, government representatives, local officials, customers, business partners and company executives.
The newly commissioned facility produces high-purity rare gases by refining feedstock extracted from POSCO’s oxygen plants. The investment reflects POSCO Group’s long-term strategy to expand into the industrial gas business, following the establishment of a dedicated business unit in 2021 and the creation of its Industrial Gas Business Division in 2023.
The plant has an annual production capacity of 130,000 normal cubic metres (Nm³) of rare gases, enabling it to supply approximately 52 percent of South Korea’s semiconductor industry’s domestic demand. It produces high-purity xenon, krypton and neon, which are essential materials used in semiconductor lithography, chip etching processes, aerospace systems, medical equipment and other advanced technology applications. Until now, these strategic gases were largely sourced through imports. Local production is expected to improve supply chain resilience while reducing dependence on overseas suppliers for critical industrial materials.
Speaking at the inauguration, Chang In-hwa said the project represents a significant achievement at a time when global supply chains for strategic materials continue to face growing uncertainty. He noted that producing essential gases domestically using the company’s own technology would support the long-term competitiveness of industries such as semiconductors and aerospace while strengthening the country’s industrial security.
The facility also marks an important step in POSCO Group’s broader plan to diversify its specialty gas business. By combining its established steelmaking operations with advanced gas purification technologies, the company aims to expand beyond conventional industrial gases into high-value specialty products.
Alongside supplying oxygen and nitrogen for steel manufacturing and rechargeable battery material production, POSCO Group plans to strengthen its presence in premium rare gas markets that serve next-generation industries.
