POSCO to Build Automotive Steel Plant in China... 900,000 Tons Annual Capacity to Complete by End of Next Year

Bird's-eye view of Hagang Pohang Train Platform Co., Ltd.

[Asia Economy Reporter Kim Hyewon] POSCO has begun construction of an automotive steel sheet factory in Tangshan City, Hebei Province, China.

POSCO announced on the 7th that it held a groundbreaking ceremony for a plated steel sheet factory with an annual production capacity of 900,000 tons. The goal is to complete construction by the end of next year. Previously, in September last year, POSCO established Xiagang Pohang Automotive Sheet Co., Ltd. (Xiagang Pohang) with Xiagang Group Co., Ltd. (Hebei Steel), each holding a 50% stake, to produce and sell automotive plated steel sheets in China.

The groundbreaking ceremony, held online, was attended by Choi Jeong-woo, Chairman of POSCO Group; Kim Hak-dong, Head of Steel Division (Vice Chairman); Yu Yong, Executive Director of Hebei Steel; Wang Nanyu, General Manager; and Yoo Bok-geun, Economic Counselor of the Korean Embassy in China.

In his congratulatory speech, Chairman Choi said, "The joint venture must fulfill its role and responsibility as a global automotive steel sheet manufacturer leading eco-friendly initiatives," and added, "Based on the high-level expertise and experience held by both companies, please innovatively upgrade the production standards of automotive steel sheets."

At the end of last year, Xiagang Pohang incorporated Guangdong CGL, a subsidiary operated by POSCO in Guangdong Province with an annual capacity of 450,000 tons, thereby securing a production capacity of 1.35 million tons. The cold-rolled coils used as raw materials are supplied equally by both companies according to their shareholding ratio.

Hebei Steel, ranked second in China and third worldwide with a crude steel production of 44 million tons in 2020, is included in the Fortune Global 500 companies along with POSCO.

POSCO's strategy is to establish a stable supply system in response to the growing demand for automotive steel sheets in China through this cooperation with Hebei Steel. China is the world's largest automobile manufacturer, producing 25 million vehicles in 2020, accounting for 32% of global automobile production.

This content was produced with the assistance of AI translation services.