OREANDA-NEWS. May 17, 2012. Baosteel Howa Trading Co., Ltd., under Baosteel Co., Ltd., Baosteel International, South Korean GNS Co., Ltd. and Gyeonggi government sign foreign investment introduction memorandum in Suwon City, Gyeonggi Province, South Korea. Baosteel Group Corporation chairman Xu Lejiang, South Korea Gyeonggi Province governor Kim Moon-soo, Chinese ambassador to South Korea Zhang Xinsen attend the signing ceremony, reported the press-centre of Baosteel.  
 
Baosteel Co.,Ltd. and GNS will invest and build a new steel processing and distribution center in South Korea Gyeonggi Province and provide GMK (General Motor Korea) with JIT service: automotive sheet storage, shearing  and distribution. Baosteel and General Motor establish long-term strategic partnership on a global scale. In 2008 Baosteel starts official car plate supply to South Korean General Motor; The product quality is highly approved by customers and sales volume increases steadily year by year. In order to meet the requirements of the GMK about providing both quality products and quality processing and distribution service, Baosteel decides to invest in the project.

It is reported that Baosteel subsidiary and GNS's equity ratios in Baosteel South Korea steel processing and distribution center project are 50% respectively. The total investment is about 26 billion won and the designed annual capacity is 110,000 tons. At present, the project joint venture is officially incorporated and is planed to be put into operation before the end of this year.

In the morning, chairman Xu Lejiang visits the processing and distribution center project local customer GMK (South Korea General Motor) and attends the signing ceremony in the afternoon. Xu Lejiang says that this project is Baosteel's first foreign direct investment project in South Korea and Baosteel's first overseas steel processing and distribution center project.The project company will follow the principle of localization, strictly comply with the provisions of Korean law and related policies. While being a honest corporate citizen, it will also assume its social responsibility in staff employment, taxation, environmental protection and social welfare.

In the investment memorandum signed with Gyeonggi government, Baosteel says that the project company will give preference in employment to Gyeonggi citizens and contribute to the economic development of Gyeonggi Province. Gyeonggi government also says that they will provide the necessary support to promote the project.