POSCO, South Korea's largest steel producer and one of the world's biggest steelmakers plans to establish a new HDG production line for auto plate in China's Guangdong province, Shunde city.
The construction of the new HDG production line, with an annual capacity of 0.45 million mt is planned to be started in Q2 2011 and completed in 2012. The production at the new line is expected to be commenced in 2013. The project received approval from Chinese government last month.
According to POSCO, the Chinese automobile demand is increasing quickly. In 2009, Guangdong province's automobile output amounted to 1.1 million units, and the fact that there's no large steel mill in Guangdong province has influenced POSCO's decision to establish its new steel mill in this region.