Jul 31 2010
POSCO on July 28 completed the construction of POSCO-CLPC, the new processing center at the EU Economic Development Zone in Shenyang, China, and started operations on the same day.
The opening ceremony featured POSCO employees headed by Senior Executive Vice President Shin Jung-suk, Shenyang city officials including its vice mayor, plus employees from the steelmaker's partner company, such as FAW-Volkswagen, FAW-Car and HAFEI.
''POSCO will never cease its effort to get love and trust from its customers and related local communities,'' he said in his congratulatory speech during the ceremony. ''We will do our part to make the three northeastern provinces of China, which include Shenyang, a new hub for the global automotive industry,'' he added.
The new processing center has been designed to cope with the explosively increasing demand for steel in the three Chinese provinces, which is the production center of the Chinese automotive industry. It is also expected to strengthen the company's market presence in the world's most populated country.
POSCO-CLPC, equipped with a Slitter, a Shear, a Blanking Line and a Mini-Shear, will process 170,000 tons of steel every year.
The three northeastern provinces, with Shenyang as part of it, is growing rapidly as the largest production center for the Chinese auto industry, as global carmakers such as FAW, BMW China, GM and Volkswagen have been aggressively invested in the region. Shenyang plans to grow its auto industry to produce 1 million units of vehicles and have 100 auto part makers by 2012. It aims to post 100 billion yuan ($14.79 billion) in revenue through the sales of the vehicles.
The operation of POSCO-CLPC, in pace with such remarkable growth of the industry, is expected to enhance its customer companies' competitiveness and future value. The processing center will also help POSCO shorten its supply chain in China.