Posco will establish Qingdao Pohang Stainless Steel Co. Ltd, a stainless steel plant, with Qingdao Steel in China’s Shandong Province. Posco holds 80% of the shares, investing USD 48 million out of the total capital USD 60 million. Qingdao Steel holds the remaining 20%. Annual production capacity of the stainless steel plant is estimated at 150,000 tonnes. Construction of the plant is set to begin in August 2003 with production expected to start in 2005. Demand for stainless steel sheets in China is expected to increase at an annual rate of 6.8%. The current shortage in supply is expected to last for some time to come, despite the growth in production capacity.
