South Korea-based POSCO and China-based HBIS group have announced a JV to produce steel for the auto sector, with an investment of $600mn, according to the local media. Both the steelmakers will have an equal share in the plant that will come up at Laoting County, Tangshan, Heibei Province in China. Construction for the project is likely to commence in January next year.
POSCO on Friday said that construction of the plant could end by late 2023 with an annual production capacity of 900,000mt of galvanized steel sheets, largely used in car and other automotive manufacturing.
POSCO already has a plant in China’s Guangdong Province with an annual production of 450,000mt of automotive steel sheets. With this joint venture, the Korean steelmaker will have a total capacity of 1.35mn mt by 2023 in China, as the company targets to establish a competitive advantage in the world’s largest automotive steel market.
POSCO has been successfully operating with similar manufacturing joint ventures in Indonesia and Vietnam.
According to World Steel Association, in 2020, HBIS was the world’s third-largest crude steel producer with 43.76mn mt production, while POSCO steel with 40.58mn mt was the sixth-largest in the world.