POSCO, Nissan Trading to Launch Steel Process JV in Kawasaki

POSCO of South Korea agreed with Nissan Trading, which is subsidiary of Nissan Motor, to establish joint automotive steel processing center in Kawasaki. They keep talking for the agreement under that Nissan Trading would participate in POS-YPC, which is POSCO Japan’s subsidiary to operate the coil center. POS-YPC will start operation in May 2008 after working in Higashiogishima, Kawasaki instead of original planned Honmoku, Yokohama. POSCO Japan established wholly owned POS-YPC with 500 million yen of capital in September 2006. The firm planned to lease warehouse with 14,500 square meters floor space and 20,000 tonnes of deposit capacity in Honmoku and to introduce 2 slitter machines with annual 80,000 tonnes of processing capacity for 550 million yen starting operation in 2007.POSCO decided to cooperate with Nissan Trading for the center and changed the site to Kawasaki while the firm still keeps the original processing plan in volume and facility. POSCO tries to improve the customer service by controlling from process to delivery while the firm commissions the processing for the materials from South Korea to third party. POSCO started processing operation at POS-OPC in Izumiotsu, Osaka in June while the firm operates at POSMETAL in Kitakyushu, Fukuoka and at POS-NPC in Toyohashi, Aichi. The firm expands the processing service centers network in the world targeting 40 sites and 4 million tonnes of annual capacity by 2010 while the firm shifts the steel production to high valued items.