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POSCO ICT to Join with China's Tangshan Iron & Steel in LED Business

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Wednesday, September 25th, 2013
SEOUL, KOREA- POSCO ICT, a POSCO Group company specializing in IT services and solutions, said on September 24 that it would establish an LED lighting business jointly with Tangshan Iron & Steel Co. Named as Tangshan-POSCO LED Ltd., the 50:50 joint venture will have paid-in capital of 50 million yuan (US$8.17 million). With the main office in Tangshan, Hebei Province, the new company will produce street lamps, industrial lighting devices, and home interior lights.
 
Tangshan is an affiliate of Hebei Iron and Steel Group, the No. 3 company in the world in terms of crude steel production after ArcelorMittal and Nippon Steel & Sumitomo Metal. According to McKinsey & Co. and other market research firms, the current Chinese LED lighting market is estimated at $4.1 billion and will grow to $9.8 billion by 2015.
 
In the first few years of operation, the LED business is expected to find sufficient outlet for its products, through Hebei Iron and Steel Group affiliates as well as the Tangshan city government which will replace all the city's street lights with LED devices. A POSCO ICT official said, "With the latest cooperative deal, POSCO's LED business unit will be able to lay the foundations for future business in China."

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