Posco, Sanming plan steel mill construction

Posco, Sanming plan steel mill construction

South Korean steelmaker Posco is currently in talks with Sanming Steel to establish a plant in eastern China's Fujian province. The planned integrated steel plant will have a 12 million-ton per year production capacity. The project will cost approximately RMB 8 billion ($986.4 million). The ratio of the joint venture between Posco and Sanming Steel was originally planned as 51:49, but China's new policy forbids foreigners from taking a controlling stake in Chinese steel assets. Sanming Steel produced 2.54 million tons of crude steel last year, and it is planning to produce around 3 million tons this year, including long and flat products. Sanming Steel is also having a 700'000 ton per year capacity plate plant constructed. Furthermore, its subsidiary is building a 260'000-ton per year capacity galvanizing line and a 160'000-ton per year capacity color-coating line.