POSCO to build rare gas production facility
Korean industrial giant POSCO Holdings has formed a JV with China's Zhongtai Cryogenic Technology to boost production of rare gases for local chip companies.
According to the Korea Times, the partners have announced the plant will produce crude neon gas, crude xenon and crude krypton, and will have a capacity of 130,000 cubic metres annually. It will be located in the southern city of Gwangyang with construction due start in 2024 and complete by the end of 2025.
This project is targeting domestic electronics producers of chips, displays and other cutting-edge tech products, who typically import rare gases from the US, China and Ukraine. Like all other nations, South Korea is trying to reduce its reliance on imports and localise its supply chains.
“We will be able to help stabilize the supply of rare gases used for manufacturing chips, and alleviate tech firms’ burdens stemming from their imports,” said a spokesman for POSCO Holdings. “In particular, our new investment was made possible, as the government made swift decisions on deregulation.”
POSCO has a 75.1% stake in the joint venture, while Zhongtai Cryogenic has 24.9%.
