SNNC (Societe du Nickel de Nouvelle Caledonie et Coree), a joint venture company producing ferronickel, dedicated its second plant in Gwangyang, South Jeolla Province, in a March 6 ceremony with some 200 dignitaries attending. Present were leading officials of the government of New Caledonia, led by Gov. Paul Ne aouyine of Northern State of New Caledonia, representative of the French government Michel Colin, former Governor Lee Nak-yon of South Jeolla Province and Chairman Kwon Oh-joon of POSCO, among others.

“SNNC has unmatched capabilities as a global nickel smelter, which has been further strengthened with the second phase of the capability building project,” said CEO Kwon Oh-joon. “This project will make significant contributions to promoting the national interest of both New Caledonia and Korea, and will also become an important growth engine for the development of POSCO's stainless steel business with SMSP.”

SNNC has established a production system capable of producing 54,000 tons of pure nickel with its own engineering efforts and successfully completed the second phase of the project. It has increased its technical competitiveness by achieving the capability to handle the entire process, from the test operation of facilities through to the final production of cast iron, without any technical support from overseas.

The second electric furnace, which has started operation, was designed based on the knowledge accumulated by SNNC through the operation of the first electrical furnace. Energy efficiency and productivity have been improved by stabilizing the furnace body. SNNC’s second electrical furnace is also the world's largest, representing a major contribution to the first furnace.

POSCO and SMSP jointly launched SNNC in 2006 to produce ferronickel, the key raw material for stainless steel, made of 20 percent nickel, 80 percent steel and byproducts. The price of nickel began to rise fast in 2000 with demand for the mineral climbing rapidly in China. POSCO began to talk with the government of Caledonia about nickel imports for a stable supply of the mineral, and the result was POSCO and SMSP decided to launch a joint-venture ferronickel plant on the basis of 51:49 — with POSCO being the majority shareholder. For the first time in the world, the joint venture firm helped POSCO achieve a diametrical order from nickel mining for stainless steel production, with the largest rotary kiln for nickel. The joint venture also began to produce ferronickel for the first time in Korea in 2006 at a very inexpensive cost, with readily available power supply and easy access to the Gwangyang harbor, where iron ore and steel products are loaded and unloaded exclusively by the POSCO Gwangyang Steel Complex. These advantages have made SNNC’s ferronickel prices very competitive and a model for the creation of synergy among POSCO affiliates. 

The success of SNNC been drawing more attention. Other attempts to form a similar joint venture ferronickel plant have had a tough time. SNNC’s success has been attributed to the close cooperation and trust among all parties concerned; POSCO, SMSP, the people of New Caledonia, the New Caledonian authorities and Korean authorities.

SNNC’s major aim is to supply ferronickel to POSCO on a stable basis to make POSCO’s stainless steel products price-competitive in the global market.

New Caledonia is a special collectivity of France located in the southwest Pacific Ocean, 1,210 km (750 mi) east of Australia and 16,136 km east of Metropolitan France. The archipelago, part of the Melanesia subregion, includes the main island of Grande Terre, the Loyalty Islands, the Chesterfield Islands, the Belep archipelago, the Isle of Pines, and a few remote islets.