POSCO inks to maintain ferro-silicon supplies in China

POSCO inks to maintain ferro-silicon supplies in China

On May 9, 2005, POSCO-China entered into a partnership with China's Beauty Industrial Corporation to establish a new company named Huaerliang POSCO Silicon Science & Technology Co. Ltd. The new company will produce high-purity ferro-silicon. POSCO will have 30% interest in the new company to be established while Beauty Industrial Corporation will own the remaining 70%. High-purity ferro-silicon is used in the manufacturing of high-quality steel products such as electric steel plates. For the moment, the only high-purity ferro-silicon producer of China is Santa Iron Alloy Co Ltd, an affiliate of Beauty Industrial Corporation. With the partnership, POSCO will maintain a stable supply of high-purity ferro-silicon for its Chinese operations while Beauty Industrial Corporation obtains reliable long-term clients.