Pig iron was first produced in a blast furnace at the Luisenhütte a good 250 years ago. Since then this technique has become a firmly established part of steel production. With its FINEX technology Siemens has now developed a process by which pig iron can be produced more cheaply and with far less environmental pollution. The chief advantage of FINEX technology is that it uses low-cost raw materials such as noncokable coal and fine ore. The production process is also leaner, since it dispenses with process stages required by the blast furnace method, such as coke production, sintering of fine ores and pelletizing.
In 1989 Siemens VAI applied for the first process patent for this technology. Development work began with the Korean partner POSCO, the fourth-largest steel producer in the world, in 1992. After successful conclusion of the process development, an order was placed in 2004 for implementing the process at the POSCO plant in Pohang, Korea. Applications for 24 patent families have been filed to date during the course of development of FINEX.