POSCO Breaks European Monopoly in Supplying HIC-Certified Steel to Saudi Aramco
Key Ideas
- POSCO breaks the monopoly held by European companies by supplying Saudi Aramco with hydrogen-induced cracking (HIC) certified steel for the first time.
- The supplied steel is resistant to HIC, used in high-temperature and pressure environments for making steel pipes and pressure containers.
- POSCO's HIC-certified steel delivery to the plant sector is a significant step in expanding its technology and market share in high value-added energy steel.
- This development is expected to strengthen the supply chain of the Korean plant industry and enhance competitiveness by involving Korean suppliers in manufacturing pipes, pressure containers, and fittings.
POSCO, a South Korean steelmaking company, made a breakthrough by supplying Saudi Arabia's state-run oil company, Aramco, with hydrogen-induced cracking (HIC) certified steel, a product previously monopolized by European companies. This supply was directed to the Padhili Gas Plant Expansion Project, a venture by Aramco to boost gas plant throughput significantly. The steel provided by POSCO is designed to resist HIC and is used for creating steel pipes and pressure container materials in demanding high-pressure and high-temperature environments. This marks the first instance of POSCO delivering HIC-proof steel to the plant sector, breaking the exclusive hold European steelmakers had on such products for Aramco projects. The move is significant as Aramco's requirements for HIC steel exceed international standards, and POSCO's selection over European competitors signifies a leap in technology and quality. The use of POSCO's HIC-certified steel is set to bolster the Korean plant industry's supply chain and competitiveness, with local companies like Hyundai Steel Pipe, Seah Steel, Panhan Mekatech, and Taekwang actively involved in the manufacturing process.