POSCO to set up auto steel processing plan in Jilin (2011/06/16)

SEOUL -- POSCO, South Korea's leading steelmaker, said Thursday that it has signed a deal with a Chinese steelmaker to set up a joint venture in the Chinese province of Jilin that processes steel.

POSCO will own 60 percent of the JV, with the remaining stake to be owned by Tonghua Iron and Steel Group, the largest steelmaker in the Chinese province, the South Korean steelmaker said.

POSCO, however, did not reveal how much it will spend on the auto steel processing plant, which will process 200,000 tons of hot-rolled steel annually.

The construction of the steel processing center will begin in August this year, to be completed by July 2012, POSCO said.

The processed steel goods will be supplied to automakers in the northeastern part of China. Tonghua Iron & Steel has an annual production capacity of 6 million tons.

Last year, POSCO also agreed with Jilin Province to cooperate in the steel, auto and construction sectors, as well as other business areas.

Under a deal with Jilin Province, POSCO will work together with the local Chinese government to develop raw materials used for steelmaking.

Early this week, POSCO completed construction of another plant in China, one that processes steel used for shipbuilding, in an effort to meet growing demand from shipbuilders.

The processing center in Dalian, a port city in northeastern China, has an annual capacity of 400,000 tons, and the processed steel goods will be supplied to Chinese shipyards and some South Korean shipbuilders such as Daewoo Shipbuilding & Marine Engineering Co., it said.
 

(Yonhap)