Chinese steel giant Baosteel Group has stated that on April 26 it will sign a memorandum of understanding with GNS China, a subsidiary of Singapore-based investment and corporate advisory group GNS International Limited (GNS), to construct a steel service center (SSC) focused on cold rolled steel for application in automotive manufacture in South Korea. Baosteel stated that construction work on the project will start in June this year, while the service center will be commissioned in the first half of 2013. The total investment is expected to reach KRW 25 billion ($22.5 million).
To increase its supply volumes of automotive grade sheet to South Korea, Baosteel has decided to construct a steel service center in South Korea. Baosteel has been supplying 7,000-8,000 mt of automotive grade sheet per month to GM Korea Company. Due to the lower prices of Chinese sheet. GM Korea Co. has decided to expand its monthly supply from Baosteel to 10,000 mt.