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A sketch of POSCO (CCPC)’s second factory in Liangjiang New Area. [Photo from liangjiang.gov.cn]

With increasing market demand, POSCO (CCPC) has accelerated construction of its second factory in Chongqing. The project is expected to finish by February 2016.

POSCO (CCPC) is its first processing center in western China. Its main product, high tensile steel plates, has entered mainstream automobile markets and is widely adopted by manufacturers such as Chang’an Ford and FAW-Volkswagen.

POSCO （CCPC） signed contracts with Liangjiang New Area in November 2014 and obtained the business license for its second factory in January 2015. By May 2015, the factory's design was complete.

From 2008 to August 2015, the company's total production volume exceeded 900,000 tons. Its first factory produced 200,000 tons in 2014, and is expected to produce more in 2015.

With an area of 79 mu, the second factory will be a processing center for high tensile steel plate, and construction will be finished through two phases. After being put into operation, the capacity of the second factory is expected to exceed 140,000 tons per year.

The Automobile industry is one of the three traditional industries of Chongqing. In 2014, the automobile output of Chongqing was 2,630,000, ranking first in the country. In 2007,when POSCO entered Chongqing, its market share was almost zero. After eight years’ efforts in product quality and after-sales services, its market share reached 10 percent in 2015. As its first processing center in southwestern China, POSCO （CCPC） will increase cooperation with local manufacturers and develop with steel plate as its focus.

The second factory is sure to benefit the manufacturing industry in Liangjiang New area and all of western China.

POSCO (formerly Pohang Iron and Steel Company) is a multinational steel-making company headquartered in Pohang, South Korea. It is a top 500 company and one of the three biggest steel-making companies in the world.

Edited by Andrew Ancheta