Posco Opens New Steel Plant in China

The Zhangjiagang Pohang Stainless Steel Co. Ltd. (ZPSS), an integrated iron-steel plant in China’s Suzhou City, roared with fire at its completion ceremony at 10 a.m. November 22.

The ZPSS is the first foreign steel company in mainland China, which produces cold-rolled stainless steel from molten iron. Posco’s China-based ZPSS has manufactured stainless cold-rolled steel with hot-rolled steel brought from the ironworks in Posco’s plant in Pohang since 1997 when it was founded.

However, to get into Chinese market, Posco embarked on building the plant in December, 2004. It was a large-scale construction project, with investments during the two years reaching a billion dollars (about 95 million won).

Thanks to the completion of this ironworks, Posco now holds the upper hand in China’s, and the world’s stainless steel market.

The production ability of this ironworks is 600,000 ton a year. This makes it third in China, after China’s largest stainless steel production companies Taiyuan Steel (3 million tons), and Baogang Stainless (1.5 million tons).

With the completion of the ZPSS, the amount produced in China and in Korea adds up to 2.6 million tons. After Taiyuan Steel and Germany’s TKS (2.82 million tons), Posco has become the third biggest company worldwide.

Posco Chairman Lee Gu-tae, who was present at the ceremony, said, “China is already a steel power country, consuming 37% of the world’s steel, and producing 31% of the world’s crude steel. The plant will be of big help in securing China’s insufficient high-class stainless steel market, and will mutually support and develop both Korea and China’s steel industry.”

orionha@donga.com changkim@donga.com