POSCO Completes Construction of 'Hagang Pohang' Auto Steel Joint Venture Plant with Hebei Iron and Steel, China

On the 19th, the Completion Ceremony of Phase 1 Factory of Hegang Port Joint Venture between Hebei Iron and Steel Group and Hebei Province, China was Held

POSCO. Photo by Jinhyung Kang aymsdream@

On the 19th, POSCO held a completion ceremony for a joint venture factory producing and selling automotive galvanized steel sheets with an annual capacity of 900,000 tons in Hebei Province, China, in partnership with Hebei Iron and Steel Group Co., Ltd. (hereinafter Hebei Iron and Steel).

In May 2021, POSCO's board of directors approved the establishment of a joint venture in Tangshan City, Hebei Province, China, with two continuous galvanizing lines (CGL) for galvanized steel sheet production and an annual capacity of 900,000 tons to expand sales of automotive galvanized steel sheets in China and establish a stable local production and sales system. CGL (Continuous Galvanizing Line) refers to the production process of galvanized steel sheets (CG). Galvanized steel sheets are mainly used as materials for automobiles.

POSCO and Hebei Iron and Steel each invested 300 million USD, totaling 600 million USD, to establish the joint venture 'Hagang Pohang (河?港浦)', starting construction in January last year and completing the first phase plant with a capacity of 450,000 tons on the 19th. The second phase plant is scheduled to be completed in May 2024.

Additionally, with the incorporation of 'Guangdong Pohang', a galvanized steel sheet plant with an annual capacity of 450,000 tons operated by POSCO in Guangdong Province, China, as a subsidiary, 'Hagang Pohang' will have a total production capacity of 1.35 million tons per year.

The completion ceremony held on the 19th was attended by about 200 people, including Choi Jeong-woo, Chairman of POSCO Group; Kim Hak-dong, Vice Chairman of POSCO; Wei Yongdong, President of Hebei Iron and Steel; Jung Jae-ho, Minister at the Korean Embassy in China; Wang Zhengfu, Governor of Hebei Province; and Wu Weidong, Secretary of Tangshan City.

Chairman Choi Jeong-woo said in his commemorative speech, "The Hagang Pohang joint venture is meaningful as it marks the completion of world-class automotive steel sheet facilities, following the agreement in 2019 to pursue a joint venture based on the high technology and experience possessed by both companies. We look forward to it becoming a global automotive steel sheet manufacturer leading the future eco-friendly society."

Wei Yongdong, President of Hebei Iron and Steel, stated, "By complementing the strengths of two global steel companies and creating synergy, we will make the Hagang Pohang joint venture a company leading the development of future low-carbon technologies."

China is the world's largest producer of automobiles and home appliances and continues to grow as the largest market for high-grade steel products. Last year, China's automobile production reached 27 million units, and continuous growth is expected in the future, driven by the growth of electric vehicles.

Since opening its Beijing office in 1991, POSCO Group's total of 45 subsidiaries have cooperated with various customers in China, expanding the market in line with China's industrial development.

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