South Korea’s steel-to-battery materials conglomerate POSCO Group plans to invest in Neuromeka Co., the country’s leading collaborative robotics manufacturer, to boost its struggling steel business through factory automation and seek new growth opportunities, as reported by The Korean Economy Daily.
On Friday, Neuromeka announced it would issue 10 billion won ($7.2 million) in convertible bonds to POSCO Holdings Inc., the parent company of POSCO, the world’s NO.7 steelmaker, and POSCO Future M Co., an electric vehicle battery materials producer.
POSCO Holdings will secure a 3.81% stake in Neuromeka if the conglomerate converts the debt securities into the Kosdaq-listed company’s stocks.
The group is expecting to develop collaborative robots and artificial intelligence systems for the automation of their steel factories with Neuromeka.
The steel industry lags behind sectors like semiconductors and automobiles in terms of automation, such as moving molten iron, and POSCO is aiming to address this gap. The company has already automated certain manufacturing processes, according to company officials.
“POSCO, which has been struggling against cheaper products from China, is set to cut expenses such as labor cost through factory automation, the company will implement smart factories through AI integration,” said a steel industry source.
South Korea’s leading steelmaker has shut down a wire rod mill in the country and is looking to sell its entire stake in a Chinese stainless steel joint venture, amid intense competition with local rivals and an oversupply in the market.