Ceremony for phase 1 of Hagang Pohang Plant, a joint venture with Hebei Iron and Steel, held in China’s Hebei Province on Oct. 19
Increasing output to 135,000 tons, Including 90,000 tons of automotive coated steel sheets and the former 45,000-ton Guangdong Pohang Plant
Chairman Jeong-woo Choi aims for Hagang Pohang to be a global leader in green auto steel production.
On Oct. 19, POSCO and Hebei Iron and Steel Group (”Hebei Iron and Steel”) held a ceremony for the completion of an automotive coated steel sheet plant with an annual production capacity of 900,000 tons in Hebei Province, China.
In May 2021, a POSCO board meeting approved the establishment of a joint venture with a 900,000-ton annual production capacity and the construction of a second continuous galvanizing line (CGL) in Tangshan City, Hebei Province, China. This was aimed at expanding sales of automotive coated steel sheets in China and securing a stable local production and sales system.
*A continuous galvanizing line (CGL) : refers to the production process for continuous galvanizing (CG), which is mainly used in automotive materials.
POSCO and Hebei Iron and Steel jointly invested a total of $600 million, with each contributing $300 million, to create the joint venture Hagang Pohang. Ground was broken in January last year, and the first plant with a capacity of 450,000 tons officially opened on Oct. 19. The second plant is on track for completion in May 2024.
In addition, as POSCO incorporates the Guangdong Pohang coated steel sheet plant in Guangdong Province, China, with an annual capacity of 450,000 tons as its subsidiary, Hagang Pohang will have a combined production capacity of 1.35 million tons.
The completion ceremony on Oct. 19 was attended by more than 200 people, including POSCO Group Chairman Jeong-woo Choi, Vice Chairman Hag-dong Kim, Hebei Iron and Steel President Wei Yong, South Korean Ambassador to China Jae-ho Jeong, Hebei Province Governor Wang Jengpu, and Tangshan City Secretary Wu Weidong.
Chairman Choi said, “The Hagang Pohang joint venture is a significant achievement as we inaugurate world-class automotive steel production facilities after we agreed to pursue a joint venture based on the high technical expertise and experience possessed by both companies in 2019.” He added, “We look forward to advancing as a global automotive steel producer leading the way to a greener future society.”
President Wei Yong of Hebei Iron and Steel said, “We will transform the Hagang Pohang joint venture into a pioneering force in future low-carbon technology development by harnessing the complementary strengths and synergies between the two global steel giants.”
China is the global leader in automobile and home appliance manufacturing and has a thriving demand for high-end steel. China’s car production reached 27 million units in 2022 and is expected to continue to grow in the future, primarily fueled by the electric vehicle sector.
Since the establishment of its Beijing office in 1991, POSCO Group and its 45 group affiliates have been expanding its market in line with China’s industrial development by cooperating with various customers in China.