POSCO Holdings held a ceremony in Hebei, China, on October 19 to mark the completion of a 900,000-ton-per-year automotive plated steel production and sales plant in joint venture with Hebei Iron and Steel Group.
In May 2021, POSCO Holdings' Board of Directors approved the establishment of a joint venture to build two Galvanized Steel Continuous Galvanizing Lines (CGL) in Tangshan city, Hebei, China, with an annual capacity of 900,000 tons, to expand sales of automotive plated steel in China and establish a stable local production and sales system.
CGL refers to the production process of galvanized steel (CG), which is mainly used as a material for automobiles.
POSCO Holdings and Hebei Iron and Steel Group invested US$300 million each, for a total of US$600 million, to establish the joint venture, which began construction in January last year and completed the first plant with a capacity of 450,000 tons on October 19. The second plant is scheduled to be completed in May 2024.
The completion ceremony on October 19 was attended by more than 200 people, including POSCO Group Chairman Choi Jeong-woo, POSCO Vice Chairman Kim Hak-dong, and the president of Hebei Iron and Steel Group.
POSCO Chairman Choi Jeong-woo said, "The joint venture is expected to leap forward into a global automotive steel production company that will lead the eco-friendly society in the future based on the high technology and experience possessed by both companies in 2019."
China is the world's largest automobile and home appliance producer and continues to grow as the world's largest market for high-grade steel. In 2022, China's automobile production is expected to reach 27 million units, with continued growth driven by the growth of electric vehicles.
Since the opening of its Beijing office in 1991, POSCO has been expanding its market in line with China's industrial development, with all 45 POSCO Group companies working with various customers in China.
