South Korea-based POSCO plans to list its China stainless steel joint venture in Shanghai or Hong Kong as early as 2013 to strengthen its value.
The venture, China Zhangjiagang Pohang Stainless Steel (ZPSS), has recently increased its annual capacity to 1 million tons from 800,000 tons, POSCO, the world's third-largest steel maker, said in an e-mailed statement yesterday.
POSCO said it expects the joint venture to meet requirements needed for the planned initial public offering in 2013. Hong Kong and Chinese mainland listing regulations require companies to be profitable for three consecutive years before an IPO.
POSCO didn't say how much it planned to raise.
The latest capacity expansion at ZPSS brings POSCO's total stainless steel capacity to 3 million tons per year, making it the world's second-largest stainless steel maker on a par with China's Taiyuan Iron and Steel, POSCO said.
POSCO and ZPSS will jointly develop a nickel mine in Indonesia to secure the raw material for stainless steel production, it said.
The joint venture, created in 1997, is 82.5 percent owned by POSCO and 17.5 percent held by Shagang Group, China's leading private steel mill.
Stainless steel demand is set to grow 5 to 7 percent per year over the next five to 10 years, Shanghai-based Baoshan Iron and Steel Co said last week. Baosteel is China's second-largest maker of the rust-proof metal.
