POSCO to build new galvanizing line in China

South Korean steelmaker POSCO has announced that its Guangdong Province, China-based subsidiary Shunde Posco Coated Steel Co., Ltd is planning to invest $1.298 billion to build a galvanizing line with an annual production capacity of 450,000 mt of galvanized steel sheets, in order to satisfy demand from the higher end of the automobile market.
 
The project is expected to be implemented in three stages. In 2010, Xingtan, the town where the project will be based, realized a total industrial output value of RMB 25-26 billion ($3.8-4.0 billion). Once the project is completed, the galvanizing line will contribute over RMB 20 billion ($30 billion) of industrial output value to the town annually.
 
Shunde Posco Coated Steel, which was set up in 1997 by POSCO, is the only electrical steel plate producer in Guangdong Province, with a total production capacity of 330,000 mt of electrical steel plate.