South Korean media reported that South Korean steelmaker Posco is working with Chinese steel producer HBIS Group Co to produce and sell automotive galvanized steel sheets and have signed an agreement to establish an equally invested joint venture. Posco and HBIS Group said they will invest a total of USD 600 million, USD 300 million each, to build a galvanized steel sheet production plant with a producing capacity of 900,000 tonnes in Tangshan in Hebei Province. Posco Chief Executive Officer Mr Choi Jeong-woo said “From our collaboration with HBIS Group we plan to reinforce our position as the most competent automotive steel sheet supplier in China, where it has the world’s biggest market for automotive steel sheets.”
The two companies will start construction on the production facility in January 2022 and it is expected to be completed by the end of 2023
Posco also plans to have Guangdong Continuous Galvanizing Line, which it operates in Guangdong in China become incorporated into their joint company with HBIS Group. This will add an annual production of 450,000 tonnes of steel products, increasing the joint company’s annual production volume to 1.35 million tones.
Source: STEELGURU
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