Posco Start Work on Chinese Automotive Steel Plant

Korea's Posco have started construction of China’s largest automotive steel sheet processing facility, Posco Suzhou Automotive Processing Center Co. Ltd.

The new facility is located in the city of Kunshan, near Shanghai and will have an annual capacity of 200,000 tons.

Posco Suzhou be able to supply a range of sizes of automotive steel sheet to meet the demands of the Chinese automotive industry. They will also have the ability to store and deliver materials reducing logistics requirements of client companies.

Posco’s Chinese facility will be equipped with laser welding technology to produce Tailor Welded Blanks as well as presses for making high function automotive steel sheet.

China produced 3.25 million cars last year alone. This is expected to increase to 10 million by 2010. Last year Posco exported 150,000 tons of automotive sheet steel to China. They expect this years demand to increase to 340,000 tons with an estimated demand of 1 million tons by 2010.

For more information on automotive panels, click here.

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