Heavy steel group contracts with POSCO in South Korea

22nd, Heavy steel Group and South Korea POSCO signed the Finex Comprehensive demonstration Project cooperation Agreement (MOA) and the cold rolling Galvanizing project Memorandum of Understanding (MOU) in Chongqing. This is the important measure to promote the industrial transformation and upgrade and optimize the product structure, which is of great significance to further improve the localization supply chain of Chongqing Automobile and home appliance industry. It is reported that the joint construction of the Chongqing Heavy Steel and Posco Finex comprehensive demonstration mills, will adopt the world's most technologically mature, industrial production adaptability of the best finex melting reduction and CEM continuous rolling process, integrated steel new Area construction of a number of technical innovation and independent intellectual property rights, Build the world's first set of FINEX-CEM demonstration production line, and to be combined with longevity Chemical park, will be surplus gas supply chemical enterprises, to achieve metallurgical-chemical integration, the establishment of high efficiency, low energy consumption of the comprehensive demonstration steel, to truly achieve the green development of iron and steel industry, energy-saving emission reduction, Adjustment of structure and elimination of backward capacity has a positive impetus. South Korea's POSCO has agreed to set up a steel plant jointly with Chongqing, hoping China's demand will make up for its weaker sales in South Korea, Reuters reported. The two joint-venture steel mills, which hold 50% interests, will be built in Chongqing, China, with an annual output of 3 million tonnes, the report said. Posco said in a statement that two companies also agreed to consider the establishment of a joint venture to produce car steel. POSCO is currently the world's largest manufacturer of automotive steel, 2012 production, supply of high-quality automotive steel more than 8 million tons, more than the global automotive consumption of one-tenth, and has formed a high-quality sales and service management model. Steel and POSCO to cooperate in the cold rolling galvanizing project will mainly produce advanced cold-rolled, galvanized plate, targeted service in Chongqing Automobile and home appliance market.