ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business deals

South Korea's Posco builds Chinese auto steel venture with HBIS

Rivals invest $600m to supply galvanized sheets as China's car industry expands

Posco's plant in China's Guangdong Province produces 450,000 tons of automotive steel sheets a year. (Image courtesy of Posco)

SEOUL -- South Korea's Posco said Friday it will form a joint venture to manufacture automotive steel in China with HBIS Group, the country's second-biggest steel producer.

Each side will invest $300 million into the 50-50 venture, constructing a plant that makes galvanized steel sheets to supply China's growing auto industry.

"We will establish our competitive advantage in the world's largest automotive steel market through the joint venture," Posco Chairman Choi Jeong-woo said.

Construction of the plant in Tangshan, a city near Beijing, will begin in January, with completion due at the end of 2023. The facility will produce 900,000 tons of galvanized steel sheets a year.

A Posco plant in China's Guangdong Province produces 450,000 tons of automotive steel sheets yearly. This factory will be absorbed by the joint venture, the company said.

Global automakers are building and expanding assembly plants in China. Posco, South Korea's leading steelmaker, has joined forces with a bitter rival to boost the local capacity. The company operates similar manufacturing joint ventures in Indonesia, Vietnam and elsewhere.

HBIS is the world's third-largest crude steel producer, churning out 43.76 million tons last year, World Steel Association data shows. Posco ranks sixth at 40.58 million tons.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more