Chinese steelmakers HBIS Group and South Korea's POSCO have agreed to invest $ 600 million in a joint venture to produce and sell automotive steel sheets in China, POSCO reported on Friday.
In this way, POSCO aims to create a stable steel sheet supply chain for the automotive industry in China, the world's # 1 automobile manufacturing country, the Korean steelmaker said.
The steelmakers will invest $ 300 million each and receive a 50% stake in the joint venture, which plans to begin construction of a flat mill in Tangshan - the heart of China's steel industry - in January next year, POSCO reported. The 900,000 ton plant is expected to be completed by the end of 2023.
The joint venture will also include the existing Guangdong CGL - a 450,000 tonne vehicle steel sheet manufacturer currently under POSCO management - as its subsidiary, bringing the total production capacity of the enterprise to 1.35 million tonnes, with the two partners are planning to supply materials in equal shares.
POSCO invests in a Chinese sheet steel mill
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