POSCO China Holding Company is commenced on Nov. 7
South Korean steel maker giant POSCO announced that its holding company located in Beijing is officially launched last Friday, under the name of POSCO
China Holding Company. This is a very important step for POSCO in its plans of a global expansion as
China is expected to become a leading country in the international steel industry soon with its pretty high
production and
consumption figures.
As previously reported by SteelOrbis back in July, POSCO
China is established with the purpose to help POSCO in its investment projects in
China with an initial capital of $35 million; such as organizing POSCO's operations in the country, funding existing
investments and also initiating new
investments, while supporting these
investments in their cooperations with the central and local governments in
China. Besides, it will facilitate reconciling the changes in government policies or strategies domestic and other international steel firms.
It is reported that the holding company originally plans to acquire 10% of POSCO's shares in three of its Chinese projects; namely BX Steel POSCO Cold Rolled Sheet, Qingdao Pohang
Stainless Steel and POSCO Suzhou
Automotive Processing Center. Subsequently POSCO
China will gradually take over 10% of POSCO's shares in three of its subsidiaries located in
China. These subsidiaries are Zhangjiagang POSCO
Stainless Steel, Shunde POSCO
Coated Steel and Dalian POSCO-CFM
Coated Steel.