POSCO Selects SMS Group for Major Mill Upgrade
South Korea’s leading steelmaker, POSCO, has awarded a modernization contract to SMS group to upgrade its wire rod mill at the Pohang plant. POSCO ranks as the fifth-largest steel producer globally and the largest in South Korea. Learn more about POSCO at https://www.posco.com and SMS group at https://www.sms-group.com.
Key Equipment Upgrades and Enhancements
SMS group will replace critical mill components to improve production performance and product quality. The upgrade includes:
- New descaler systems, including an additional unit on the rolling mill
- Installation of a modern cropping shear
- A shiftable water cooling line for flexible processing
- pouring reel machines paired with a walking beam conveyor
- Advanced cooling fans and hoods for in-line coil treatment
The Pohang plant currently produces 540,000 tons annually of wire rod and bar-in-coils for automotive applications, with sizes ranging from 14 mm to 42 mm and coil weights up to two tons.
POSCO Wire Rod Mill Modernization Expands Capabilities
The POSCO wire rod mill modernization will expand production capabilities and improve operational performance. The upgraded mill will produce coiled round products up to 55 mm and enable smaller products to roll at speeds of up to 22 meters per second. These improvements will strengthen POSCO’s position in the automotive and specialty steel markets.
Advanced Automation and Surface Quality Improvements
SMS group will integrate a scratch-free conveying system across all mechanical areas. Combined with advanced automation technology, this system will enhance surface quality, improve coil shape, and ensure consistent product formation.
The project also introduces:
- Off-line simulation using CCT® (Controlled Cooling Technology)
- A rapid water cooling line change system completed in under five minutes
These features will boost operational efficiency and reduce downtime.
SMS Group Strengthens Industry Leadership
This project highlights SMS group’s expertise in mill modernization and reinforces its leadership in supplying rolling mills for high-quality steel production across all size ranges. SMS group employs approximately 14,000 people worldwide and operates under SMS GmbH, owned by the Familie Weiss Foundation.
