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.
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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.
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