Recently, HBIS Group and POSCO have signed a MoU to set up a jointventure in China to develop, produce and sell high-end steel products for theautomobile industry. The two partners will discuss establishing a joint venture which produces high quality and high strength steel products as part of the Laoting cold rolling steel project, aiming to better seize opportunities in the Chinese automobile market. Concrete cooperation on the auto steelproject will enable the two partners to further deepen the comprehensive cooperation partnership, enhance respective competitiveness and realize strategic synergy.?xml:namespace>
BothHBIS and POSCO are leading players in the global steel industry. As the largest steel company in Korea, POSCOhas been rated as the world's most competitive steel enterprise by World Steel Dynamic (WSD) for 10consecutive years. POSCO has world-class technologies, marketing system and high-quality customer base in automobile sheet sector.As the most internationalized steel company in China, HBIS hasbecome the second largest steel supplier for automobile sector in China. In 2018, HBIS produced 7 Mt of steel for automobile sector, covering the full range of steel products for an entire vehicle, from structural steel, steel for auto parts to cold rolling and galvanized cold rolling steel products.
Back on August 29 2017, the two companies established a comprehensive cooperation partnership to enhance communication and cooperation in the areas of strategic planning, raw materials, technologies and energy conservation and environmental protection. Regular communication mechanism has been well established and fruitful results have been achieved. Since the first half of 2019, the two partners have conducted multi-level technical and commercial discussions on the auto steel project, and reached an intention to cooperate at the capital level. Looking forward, under the framework of theMOU, the two partners willbetter leverage respective advantage in technology, resources, etc. to jointly explore the high-end automobile market and achieve win-win results.