South Korea’s largest steelmaker POSCO announced at the end of last week it had agreed to establish a new joint venture in China with local steelmaker HBIS Group, according to reports in South Korea.

The two partners have agreed to jointly invest US$600m in a new plant in Laoting County, Heibei Province, designated to produce up to 900,000 tons of galvanised sheet steel per year to supply the local car industry.

The deal was formally signed online last week by Posco chairman Choi Jeong-woo and HBIS Group general manager Wang Lanyu.

Each partner will have a 50% stake in the new joint venture.

Choi said the deal with HBIS Group, which is estimated to be China’s second-largest steelmaker, would help his company “strengthen its position as a leading supplier of automotive steel sheet in China”.

In its last posted financial statement, Posco said it generated consolidated net revenue of KRW64.4trn (US$57bn) in 2019 which local analysts said makes it the fifth-largest steelmaker worldwide.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.