Aug 2 2007
On the 24th, POSCO completed the construction of cold-rolling plant in collaboration with China`s Benxi Steel, which added another 1.8 million ton to the annual production capacity in Liaoning city.
The event was attended by CEO Ku-Taek Lee, Sung-Woong Park (Consul General at Shenyang), Chang Won Wei (Liaoning official), Guatingbyao (chief of Political Negotiations Committee), Ryuguochang (Liaoning official) and Wi Tien Shen of Benxi Steel.
During his congratulatory address, CEO Ku-Taek Lee commented, `Bongang-Pohang Cold-rolling Plant will not only facilitate the supply of premium steel sheet, including automobile steel sheet to the local region, but furthermore contribute to the local economy in the north-eastern part of China. We will try to build a more solid collaborative relationship with the local business.`
Upon closing the collaborative contract on the cold-rolling business with Benxi Steel in 2003, Bongang-Pohang Cold-rolling Corporation was established, and in July 2004, it embarked on the construction of the plant. The completed plant includes production capacity of 0.8 million ton of cold-rolled sheets, 0.8 million ton of galvanized steel sheets, 0.2 million ton of full hard, totaling 1.8 million ton. This is expected to boost China`s economy as such production will be effectively distributed to the region`s automobile and consumer electronic goods production, in addition to providing supply for POSCO`s international office in China.
As an attempt to strengthen the collaborative relationship with Benxi Steel, POSCO increased its share of Bongang-Pohang Cold-rolling Plant from 10% to 25% following the agreement between the two parties. Through this win-win model collaborative business, POSCO is expected to further reinforce its collaborative relationship with the Chinese Steel industry.
Liaoning is the major steel and automotive industrial center of China, producing 38 million tons of steel yearly which is nearly 10% of the total annual steel production in China. The city is also deemed to be of strategic location for China`s economic growth in the northeast.
Benxi Steel, since its establishment in 1905, has been producing hot-rolled and cold-rolled sheets, wire rod, and special steel with annual production capacity of 9.1 million ton.
CEO Ku-Taek Lee (on the right), with Wi Tien Shen, the CEO of Benxi Steel, is about to press the switch to commemorate the completion of the construction.