Baoshan faces off against POSCO in Qingdao
After South
Koreas POSCO injected an additional US$12 million to build a steel products processing center in Foshan,
Chinas Baoshan Iron & Steel signed a further cooperation memorandum with the Qingdao Central government to enhance its steel products
distribution, port logistics, auto parts as well as infrastructure project
construction in Qingdao. These latest moves by the rival steel makers have added to the deep seeded competition between them.
As a key economic center as well as a sea city, Qingdao's advantageous geographic position has been well realized by both domestic steel giants and foreign steel makers. POSCO, for instance, has invested nearly $280 million in Qingdao to establish a
stainless steel deep-processing base.
In response, Ms. Xie Qihua, president of
Baosteel Group, explained that
Baosteel will supply fine steel products to the Qingdao
manufacturing base and Olympic projects. She added that
Baosteel will also make the best use of Qingdao port in order to exert its great importance for
Baosteel's global supply chain.
Officials of Qingdao emphasized that both parties will further expand cooperation based on a win-win situation to promote development.