Ltd. has agreed to jointly establish a steel mill with
Chinas Chongqing Iron & Steel Co. Ltd., a spokesman
for the South Korean steelmaker confirmed to AMM
sister publication Steel First Sept. 27.
Under a memorandum of
understanding signed Sept. 22, the two companies will set up a
joint venture in Chongqing, southwestern China, that will
utilize Finex technology, an iron production process that was
originally developed by Posco, he said.
The technology allows
the direct use of cheap iron ore fines and non-coking coal as
In addition to having
significantly lower operating costs and emissions than the
blast furnace process, Finex technology dramatically reduces
overall construction costs by eliminating the need for sinter
and coke plants, according to Posco.
The two steelmakers
will each hold a 50-percent stake in the proposed
3-million-tonne-per-year steel mill.
A formal contract will
be signed by the end of next year, once the governments of
South Korea and China approve the joint venture, the spokesman
A version of this
article was first published in AMM sister publication Steel