SEOUL, Sept 23 South Korean steel maker POSCO
said on Monday it has agreed to set up a steel plant
jointly with China's Chongqing Iron & Steel Co,
hoping strong demand from the world's biggest steel consumer
will offset weak sales at home.
The 50/50 venture, to be built in Chongqing in western
China, will have annual production capacity of 3 million tonnes.
The two firms also agreed to consider setting up a joint venture
producing auto steel sheets, POSCO said in a statement.
The new plant will use POSCO's self-developed steel making
technology called Finex, which reduces production costs and
greenhouse gas emissions and allows producers to use cheaper raw
materials, such as ore fines and non-coking coal.
(Reporting by Miyoung Kim; Editing by Paul Tait)