SEOUL, June 25 (Korea Bizwire) — POSCO, the world’s fifth-largest steelmaker by output, said Friday it has signed a deal with HBIS Group, China’s second-biggest steelmaker, to set up a US$600 million joint venture in China.
Under the deal signed online between POSCO Chairman Choi Jeong-woo and Wang Lanyu, general manager of HBIS Group, the two sides will set up a 50-50 joint venture in Laoting County, Heibei Province, POSCO said.
The plant, which is set to be completed by the end of 2023, will have an annual production capacity of 900,000 tons of galvanized steel sheet to be used in making cars, POSCO said.
POSCO Chairman Choi said POSCO’s partnership with HBIS Group could help strengthen its position as a leading supplier of automotive steel sheet in China.
Shares in POSCO rose 0.57 percent to 352,000 won ($312) on the Seoul bourse, roughly in line with the broader KOSPI’s 0.51 percent gain.