POSCO Co. successfully entered the global high-value-added energy steel market by supplying hydrogen-induced cracking (HIC) resistant steel, which has been monopolized by European suppliers until now, to Saudi Aramco for the first time. This is a significant milestone in the South Korean steelmaker’s expansion into premium industrial materials.

The steelmaker announced on Sunday that it began supplying HIC-resistant steel for Aramco’s Fadhili Gas Plant Expansion Project. The project is part of the Saudi energy giant’s initiative to increase the gas processing capacity of its existing facility by 1.6 times.

“The latest supply marks a breakthrough in the high-end energy steel market as POSCO becomes the first non-European supplier of HIC-resistant teel to Aramco,” the company stated.

HIC-resistant steel is essential for manufacturing pipes and pressure vessels that operate in high-temperature, high-pressure environments, particularly in sectors exposed to corrosive gases such as hydrogen sulfide. Almost all ultra-durable steel products were sourced from European firms until now.

Energy steel is typically classified into two key segments: the plant sector, which covers energy extraction and production, and the transportation sector, which includes pipeline infrastructure.

POSCO’s latest shipment is the first instance of its HIC-resistant steel being used in the plant sector, reflecting an aspect of the company’s diversification efforts. The company emphasized, “The HIC steel for plants required by Aramco requires HIC testing and quality certification procedures at a higher level than international standards, so European steel companies have been supplying them exclusively,” adding that “POSCO steel was ultimately selected even though European companies were seen as the primary manufacturers of pipes and pressure vessels in the early stages of the Fadhili project.”

Industry analysts believe this development will make Korea’s plant industry more competitive. Domestic partners will now be able to manufacture high-performance pipes, pressure vessels, and fittings using POSCO steel, reducing dependency on imports and enhancing global project bidding capabilities. Hyundai Steel Pipe and SeAH Steel are in charge of manufacturing pipes, Bumhan Mecatec is in charge of manufacturing pressure vessels, and Taekwang is in charge of manufacturing fittings.

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