Open / Close Advertisement

Baosteel Signs Investment Memorandum with Gyeonggi Government, GNS

05/09/2012 - Baosteel Co., Ltd. and GNS will invest and build a new steel processing and distribution center in the Gyeonggi Province and provide General Motors Korea with just-in-time service for automotive sheet storage, shearing, and distribution.

Baosteel Howa Trading Co., Ltd., South Korean GNS Co., Ltd., and the Gyeonggi government recently signed a foreign investment introduction memorandum in Suwon City, Gyeonggi Province, South Korea.
 
Baosteel Co., Ltd. and GNS will invest and build a new steel processing and distribution center in the Gyeonggi Province and provide GMK (General Motor Korea) with just-in-time service for automotive sheet storage, shearing, and distribution. In 2008, Baosteel started official car plate supply to GMK. To continue to meet the automaker’s requirements for both quality products and quality processing and distribution service, Baosteel decided to invest in the project.
 
Baosteel subsidiary and GNS's equity ratios in Baosteel South Korea steel processing and distribution center project reportedly are 50%, respectively. The total investment is about 26 billion won and the designed annual capacity is 110,000 tonnes. At present, the project joint venture is officially incorporated and is planned to be put into operation before the end of this year.
 
Baosteel Group Corp. Chairman Xu Lejiang, South Korea Gyeonggi Province governor Kim Moon-soo, and Chinese ambassador to South Korea Zhang Xinsen attended the signing ceremony.
 
Lejiang said that this project is Baosteel's first foreign direct investment project in South Korea and Baosteel's first overseas steel processing and distribution center project. The project company will follow the principle of localization, strictly complying with the provisions of Korean law and related policies.
 
In the investment memorandum signed with Gyeonggi government, Baosteel says that the project company will give preference in employment to Gyeonggi citizens and contribute to the economic development of Gyeonggi Province. Gyeonggi government also says that they will provide the necessary support to promote the project.