South Korea’s biggest steelmaker Posco Co. has completed the construction of its continuous galvanizing line (CGL) in Thailand in a bid to become the world’s largest steel provider for automobiles.

The company held a ceremony marking the completion of the new factory that will produce hot-dip galvanized steel for automobiles in Amata City Industrial Complex in Rayong Province, Thailand, with an annual output of 450,000 tons. The company has spent $300 million since it broke ground in September 2014. The automotive steel sheet manufactured by the facility will be supplied to global auto parts companies and finished carmakers operating in Thailand including Toyota, Nissan and Ford. The new facility is expected to help the company expand its basis for global auto steel sheet production.

Posco is the world’s second auto steel sheet manufacturer, commanding 10 percent of the global market share with last year’s sales of 8.7 million tons following the world’s largest automotive steel maker ArcelorMittal that sold 9.0 million tons last year. The Korean steel maker aims to produce more than 9 million tons of auto steel sheets this year and increase it to 10 million tons by 2018. Thailand’s annual automobile production reaches on average of 2 million units, making it the largest car producing country in Southeast Asia.

With the new CGL in Thailand, Posco’s overseas production capacity of auto steel sheet increased to 2.25 million tons per annum. It plans to add a new production line with an annual capacity of 500,000 tons in Gwangyang, South Jeolla Province in Korea by June next year and set up a steel mill jointly with China’s Chongqing Iron & Steel Co. It currently provides its steel sheets to 15 global finished auto makers.

“We will maintain our top position in the global auto steel industry by strengthening partnership with global automakers through 27 world-wide technology service centers,” said Posco CEO Gwon Oh-joon.

By Park Yong-beom

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]