UPDATE : 2019.4.25 THU 10:26
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POSCO-CSPC sales top 5 mil. tonsSupplying steel parts to global automakers

The cumulative sales volume of POSCO’s Automotive Steel Processing Center in Suzhou, China has exceeded 5 million tons, said the steel giant in a statement. This facility is the first POSCO steel processing center which achieved the feat in a period of 14 years.

Leaders and members of POSCO plant center in Suzhou, China, celebrate the sale of first 5 million tons of steel products.

The Suzhou Automotive Steel Processing Center (POSCO-CSPC) has recorded the fastest growth rate among POSCO’s steel processing centers in the world, with being located in the middle east area near Shanghai where many Global Top 100 automakers including Shanghai GM, Volkswagen and Geely Auto and auto parts suppliers operate.

In 2004, the Suzhou Automotive Steel Processing Center opened its first plant
with an annual production capacity of 205,000 tons. In 2007, it completed the second plant equipped with a press forming facility with a production capacity of 85,000 tons. The third plant, equipped with a blanking processing facility, was dedicated in 2012. Four years later in 2016, the fourth plant was built. As of the end of 2016, the Suzhou Automotive Steel Processing Center was equipped with a total of 470,000 tons of production capacity

Of note, the Steel Processing Center was able to stabilize its management early and expand its marketing infrastructure through equity participation in the joint venture firms of Korean auto parts suppliers such as Osstem and Mr Infra Auto, while also providing those firms with investment negotiations know-how and joint marketing.

Besides performing the function of the ordinary steel processing center, which cuts and sells coil-shaped steel plates based on the length and width customers want, it has expanded its business portfolio to higher value-added areas including press products that stamp steel parts into molds.

The Suzhou Processing Center plans to secure its future growth engine by building a Global Platform Business (GPB) business model that will assist global auto parts suppliers to advance into the Chinese market.

About 120 people attended a ceremony marking the sales of 5 million tons held at the Suzhou Processing Center on December 3, 2017. Among those present included representatives of Shanghai Tractor, Geely Auto, Shanghai Volkswagen, Sungwoo Automotive and Osstem and officials of regional entities like Kunshan City and Overseas Chinese Development Zone.

"Since the Suzhou Processing Center in Suzhou in 2005 supplied 760 tons to our firm, this year's annual supply exceeded 100,000 tons, and the cooperation between the two companies has deepened day by day," said Zhu Minhua, deputy general manager of Shanghai Tractor, a major customer of POSCO-CSPC of Jiangsu Province . “As a strategic supplier of Shanghai Tractor, we are a partner pursuing win-win development, " he added.

Currently, POSCO operates a total of 13 steel processing centers in China, including the Suzhou Processing Center. POSCO-CSPC has integrated such areas as manpower management and financing to enhance business efficiency and reduce costs since 2016.

POSCO’s FINEX Technology, a next-generation eco-friendly iron making process, allows the direct use of cheap iron ore fines and non-coking coal as feedstock. In addition to having significantly lower operating costs and emissions than the blast furnace process, FINEX dramatically reduces overall construction costs by eliminating the need for sinter and coke plants.

Shin Eugenia  edt@koeapost.com

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