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Zhangjiagang Pohang Stainless Steel Establishes 1 Million-Tonne Production Line
06/20/2011 - Posco’s stainless steel production subsidiary in China has established a 1 million-tonne steel production line in the country. Posco held the completion ceremony on June 13.
Zhangjiagang Pohang Stainless Steel (ZPSS), Posco’s stainless steel production subsidiary in China, established a 1 million-tonne steel production line in China, the first foreign company to do so in the country, it claims.
A 0.4 million-tonne dephosphorization furnace and a 0.2 million-tonne cold-rolled facility were opened, completing the comprehensive steel production system. Posco held the completion ceremony of the steel production and 600,000-tonne cold-rolled iron production lines at ZPSS on June 13.
By completing the integrated stainless steel production facility, the entire stainless steel production capacity including Pohang Steelworks has increased to 3 million tonnes, which the company says places it as the world’s second largest tier stainless steelmaker aside Acerinox (3.4 million tonnes) and Taiyuan (3 million tonnes).
The dephosphorization furnace installed by ZPSS can increase the usage rate of nickel cold iron, a low-cost material with high impurities, up to 60%, leading to an expected $40 million cost reduction each year.
The new 0.2 million-tonne cold-rolled facility increases total production capacity to 0.6 million tonnes, increasing the cold-rolled ratio to 84% including Qingdao Pohang Stainless Steel. A 0.15 million-tonne scale coil center was also installed with processing abilities including coil cutting and shearing.
ZPSS was established as a joint venture in 1997 by Posco and China’s Sha Gang Group, with 82.5% of the shares owned by Posco. With the operation of an annual 0.2 million-tonne scale cold-rolled plant in 1999, it was the first foreign company to introduce upstream facilities in China back in 2006 and became an annual 0.8 million-tonne stainless steelmaker.
At the completion ceremony, 380 personnel including Chairman Joon-yang Chung, China’s Vice Governor Zhang Wei-guo of Jiangsu Province, Vice Mayor Huang Qin of Suzhou, Secretary Xu Mei-jian and Mayor Yao Linrong of Zhangjiagang, Shanghai Consul General Chong-gi Ahn, and local clients and residents attended.
ZPSS says it is planning a listing on the Hong Kong or Shanghai stock market as a long-term task.
