Korean Steel manufacturer Posco have signed a joint venture agreement with Chinese Benxi Iron and Steel Company. They will jointly found BX Steel Posco Cold Rolled Sheets Co. Ltd in Benxi. The Operation will be located in the Liaoning Province in China.
Posco will initially own 10% of the joint venture, and is expected to expand this to 25% further down the track. They will supply the joint venture will automotive steel making technology, which is seen as being mutually beneficial.
As the name suggests the operation will produce cold rolled steel sheet, with the proposed plant having an annual capacity of 1.8 million tons. It will cost US$660 million and is due to be completed in December 2005.
Products that will be produced include cold rolled, galvanised and colour coated steels. They will be supplied to the automotive and other industries, as well as Posco’s existing subsidiaries in China.
For more information on steel galvanising, click here.