Lower investment and operational costs compared to a
conventional blast furnace plant configuration with coking and
sintering plants were decisive reasons for Posco's decision to
again invest in Finex technology. The project scope for Siemens VAI
includes the supply of basic and detail engineering for the main
plant area that comprises the melter gasifier, the fluidized-bed
reactor system and the auxiliary facilities of the hot-compacting
iron (HCI) plant. Advisory services for erection and commissioning
are part of the project scope.

The combined efforts of Posco and Siemens VAI will ensure that
the new Finex 2.0M plant will feature an optimized and highly
compact design with consideration to the limited space availability
at the Pohang steelworks. Compared to the company's two existing
Finex plants, the number of fluidized bed reactors will be reduced
from four to three. This and the installation of new technological
packages such as a pneumatic-charging system will reduce the
specific investment costs for the new Finex plant by about 15%. Hot
metal from all three Finex plants will be processed to high-quality
steel in Posco's LD (BOF) steel mills. Finex export gas is used for
the generation of electrical energy in a Posco-owned combined-cycle
power plants.

In the Finex process iron-ore fines are first reduced to DRI in
a series of fluidized-bed reactors by means of a coal-based
reduction gas. After exiting the final reactor, the DRI fines are
hot-compacted, transferred to a charging bin above the Finex melter
gasifier, and then charged by gravity into the melter gasifier
where melting takes place. The tapped product, liquid hot metal, is
equivalent in quality to the hot metal produced in a blast furnace.
Oxygen injected into the melter gasifier gasifies the charged coal,
generating the reducing gas. The coal also serves as the energy
source for the melting of HCI to hot metal. Finex export gas is a
valuable by-product that can be used for a variety of industrial
applications such as power generation, heating applications or for
additional DRI/HBI (hot-briquetted iron) production.

The Finex process was jointly developed by Posco and Siemens
VAI. A Finex plant with an annual production capacity of 600,000
t/a was first installed at Posco Pohang Works and started up in
2003. On the basis of the excellent operational results, Posco then
invested in a Finex 1.5M plant with an output of 1.5 million t/a.
Commissioning took place in 2007. Posco's decision to build a third
Finex plant underlines the company's commitment to applying
innovative and cost-saving technology to produce high-quality hot
metal. Posco was named the world's most competitive steelmaker for
the second straight year by World Steel Dynamics in June 2011.

Further information about solutions for steel works, rolling
mills and processing lines is available at  class="link" target="_blank"
href="http://www.siemens.com/metals">http://www.siemens.com/metals

A photo supplements this press release. Please see:
href="http://www.siemens.com/is-picture/IIS201109998">http://www.siemens.com/is-picture/IIS201109998