- POSCO ICT and Tangshan Steel Cooperate in Earnest in 9 Areas Including LED
- Cooperating in 9 Areas, Including Logistics Automation, Integrated Production Management, Environment, and Energy Efficiency.

POSCO ICT (CEO Bong-Rae Cho) begins cooperation with Tangshan Steel in 9 areas in full scale, including the establishment of the joint-stock company for LED lighting business. Tangshan Steel is the affiliated company of Hebei Iron and Steel, which ranked second in the world in terms of the crude steel production quantity.

POSCO ICT announced on the 26th of the last month that its subsidiary company POSCO LED and Tangshan Steel has founded a joint-stock company in China with a 50-50 investment. The company was capitalized at 50 million Yuan (about 8.7 billion won). The company is named TG POSCO LED (唐钢浦项新型光源有限公司) and the main office is located in Tangshan City.

The joint-stock company has 9 production lines in Tangshan City, and is equipped with the infrastructure that can produce 400,000 LED lamps a year. Major products include industrial lighting "bay light (factory lamps), street lamps, LED semiconductor lamps, panel light (surface lighting), and tube. In the initial stages, semi-finished products (modules) produced by POSCO LED will be assembled in the factory in China. Later, individual parts will be assembled in China to produce finished products.

As the main product (Factory Lamps) has secured a captive market, initial market entry is expected to be relatively easy. Factory lamps will be supplied to the production site of 5 subsidiary companies of Hebei Iron and Steel (Tangshan Steel, Chengde Iron and Steel, Xuanhua Steel, Handan Steel, Hebei Mining) first.

With the establishment of the LED company, POSCO ICT came to cooperate with Tangshan Steel in 9 areas in total. POSCO ICT agreed with Tangshan Steel on the development of the unmanned crane system last September, and implemented the project. In line with project implementation, POSCO ICT will diagnose 9 core areas of Tangshan Steel by the end of January 2014, which include overall logistics automation, integrated production management, energy management, and environment (electric dust collector). Based on the diagnosis result, POSCO ICT will actively participate in new system development by Tangshan Steel.

POSCO ICT also cooperates in the environment and energy field, together with Tangshan Steel and Hebei Province Science and Technology Bureau. It is said that POSCO ICT will sign an export contract (worth of 14 billion won) regarding the electric dust collector (dust removal from the industry field) and MPS (Micro Pulse System), and supply the DeSOx and DeNOx facility that is based on the plasma method, which reduces the ratio of sulphur dioxide and nitrogen dioxide.
"We cooperate with Tangshan Steel in 9 areas, including the establishment of the joint-stock company for LED lighting business. Cooperation on this occasion will give an opportunity of making a new business model through mutual cooperation, by exporting advanced technological skills and know-how of POSCO ICT to the Chinese market," said one POSCO ICT related official.

On the other hand, top management from both companies participated in the company foundation ceremony held on the 26th of the last month, which has shown that China is quite interested in cooperation between the largest steel company in China and POSCO subsidiary company. Participants include the top management of two companies (Bong-Rae Cho, CEO of POSCO ICT; Yu Yong, chairman of Hebei Iron and Steel Group, Wang Lan Yu, CEO of Tangshan Steel, Seok-Cheol Kwon, CEO of POSCO China); Young-Sam Kim and Seong-Chil Kim, directors of the Korean Embassy in China; Guo Yu Ming, vice director of the Office of Science and Technology, Heibei Province; Jisun  Shin, advisor of Tangshan City; and He Chum Jun, secretary of Kaiping District.