POSCO signed an MOA with Chongqing Iron and Steel Company, a state-run company operated by China’s city of Chongqing, to construct an annual 3Mt-scale FINEX-integrated steelworks.
POSCO first stared the commercial production of FINEX at a 1.5Mt-scale in 2007. Currently, a 2Mt-scale FINEX Plant is in construction at Pohang Steelworks. Chongqing Iron and Steel Company, established in 1893, is a state-run company with the city of Chongqing holding 100% of shares. It has 22 subsidiaries and an annual steel production capacity of 6.5Mt.
POSCO and Chongqing Iron and Steel will each own 50% of shares and invest equally to construct a 3Mt-scale FINEX integrated steelworks. The main agreement is expected to be signed by the end of next year after ratification by the government of China and approval of technology export by the government of Korea.
In addition to the MOA, POSCO and Chongqing Iron and Steel Company signed an MOU to review cooperation in an automobile cold-rolled project in the Chongqing region.
