[Offshore News] S. Korean steel makers compete over thick plates for offshore structures

POSCO, Hyundai Steel and Dongkuk Steel, which are major steel makers in Korea, are fiercely competing over high value-added thick plates used for offshore structures, according to sources in the steel-making industry Tuesday.

POSCO has been implementing its strategies in order to increase sales of high value-added steel items for marine structures since last year.

The company is notably promoting sales strategies to sell steel products with the aim of ship-building in packages. Lately, the steel manufacturer has decided to supply its thick plates for the construction project of fixed platform awarded to Samkang M&T, the nation’s special steel-pipe provider.

Not only that, POSCO is expected to provide European-made best quality steel products in bulk for the construction of the world’s largest oceanic gas processing plants that Samsung Heavy Industries won from Australia last February.

In addition, two years ago, Hyundai Steel, another Korean steel corporation, started a steel plate business with a focus on thick steel for non-shipbuilding purposes. As a result, the company has developed a new product portfolio that chiefly comprises Thermo Mechanical Control Process (TMCP) steel for marine plants and corrosion-resistant steel for submarine oil pipelines.

Dongkuk Steel Mill has also slashed production of thick steel for shipbuilding and begun mass production of corrosion-resistant steel at its mill in Dangjin, Korea. The mill maker has concentrated on producing thick steel for non-shipbuilding purposes including welding structures and pressure boilers and won contracts in the businesses. The company successfully developed corrosion-resistant steel of a 120 millimeter-diameter and intends to develop that of a 150 millimeter-diameter within this year.

*This post is based on the article Maeil Business Newspaper reported.

http://news.mk.co.kr/newsRead.php?year=2012&no=709410