Shanghai, November 20 (Gasgoo.com) South Korea's leading steelmaker POSCO said yesterday that it plans to increase automotive steel processing facilities in China as part of efforts to solidify its presence in the world's largest auto market, Asia Pulse reported.
The steelmaker is currently operating 15 plants in China that process steel used for automobiles. POSCO has set up 41 steel-processing plants across Japan, China, and 10 other countries.
"We are also planning to form joint ventures with Chinese companies to produce automotive parts," a company official said.
China's booming auto market demand may push steel demand in the country by 12% next year. Automobile and property sectors would be the big engines to drive up steel demand in 2010, an industry expert said this week.
China's auto production is expected to rise 30 percent this year to over 13 million units. If the government incentives extend, China's auto sales can grow by 10% or more in 2010.
