OCI and POSCO Chemical have signed a joint agreement to produce electronic-grade and industrial hydrogen peroxide using coke oven gas (COG), a byproduct of steelmaking processes

The joint venture (JV) is scheduled to go into operation in Q2 of 2020, with 49% of its shares owned by OCI and 51% by POSCO Chemical respectively. The two companies plan to build a hydrogen peroxide plant on 42,000㎡ land in OCI’s Gwangyang Plant with a total annual production capacity of 50,000 tons of hydrogen peroxide, targeting commercial production starting in 2022. The key ingredient in hydrogen peroxide, COG, will be supplied from the Gwangyang steel plant of POSCO. 

The two companies described their objective for establishing JV as, “To seize opportunities as demands increase for high-purity hydrogen peroxide while major semiconductor companies expand their production facilities, we came to an agreement to establish a joint venture capable of producing a stable supply of source materials for the domestic semiconductor industry.”

With the establishment of JV between the two companies, OCI will be able to secure high-quality source materials in a more stable and cost-effective means, and advance both the level of competitiveness and status in the market for the hydrogen peroxide business currently in operation.