SEOUL, Sept 23 (Reuters) - 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)