[THE INVESTOR] POSCO, South Korea’s biggest steelmaker, plans to heavily invest in titanium as a new growth engine, local news reported on July 10.

“The use of titanium is expanding and the value addition is high, which will boost profitability in the future,” an official at POSCO said.

Titanium is a metal used widely in industries ranging from aviation to munitions. It boasts 43 percent lighter weight than steel, while it has the double the strength of aluminum alloy. With the advancement of technology, titanium is now used in cars, golf clubs, outdoor gears and kitchen utensils. However, producing titanium is energy-intensive and costly, which is seen as one reason for its relatively slow growth rate, industry experts say. 

POSCO jumped into titanium business in 2008. The company, after completing product development, began production and sales in 2010, with the establishment of a titanium slab plant in the eastern Kazakhstan with a Kazakhstan company.

This year, POSCO is planning to increase sales of cold rolled titanium coil by 13 percent, from 2,300 tons to 2,600 tons.

By Ahn Sung-mi (sahn@heraldcorp.com)