Posco Group, a leading South Korean steelmaker, has taken a significant step towards securing the domestic supply of high-purity rare gases by breaking ground on a new production facility.

Posco Zhongtai Air Solutions, a joint venture between Posco Holdings and China's Zhongtai Cryogenic Technology, announced on [Date] the commencement of construction of a high-purity rare gas plant in Gwangyang, South Jeolla Province. The plant, scheduled for completion in November 2025, is expected to produce 130,000 normal cubic meters (N㎥) of rare gases annually, sufficient to meet 52% of South Korea's semiconductor market demand.

Rare gases, such as neon, xenon, and krypton, are essential elements in semiconductor manufacturing processes. They are also used in various other advanced industries, including display manufacturing and as propellant for satellites.

Posco Holdings has been producing low-purity rare gases at its steelmaking plants, but the new facility will enable the company to produce high-purity gases with a purity level of 99.999%. Zhongtai, a specialized gas company, will provide its expertise and technology for the construction and operation of the plant.

"By securing a stable domestic supply of high-purity rare gases, we aim to contribute to the growth of South Korea's advanced industries, including semiconductors and aerospace," said a Posco Holdings official.

The company plans to supply the high-purity rare gases produced at the new plant to major semiconductor manufacturers such as Samsung Electronics, SK hynix, and Intel.

"Starting with the production of high-purity rare gases, Posco Group will expand its industrial gas business portfolio, including the production of specialty gases using steelmaking byproducts and the supply of oxygen and nitrogen for secondary battery materials," said Lee Hyung-soo, head of Posco's Management Planning Division.