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South Korea's POSCO has signed a deal with HBIS Group, China's second-biggest steelmaker, to set up a US$600 million 50-50 joint venture in Laoting County in China.
The deal was signed online by POSCO Chairman Choi Jeong-woo and HBIS Group general manager Wang Lanyu.
The plant, to be completed by the end of 2023, could produce 900,000 tons of galvanized steel sheets to be used for making cars annually.
According to POSCO Chairman Choi, the partnership with HBIS Group could strengthen its position as a top automotive steel sheet supplier in China.
POSCO is the world's fifth-largest steelmaker by output.
