The magnesium refinery business

The magnesium refinery business POSCO has signed a memorandum of understanding with gonghei Gangwon Province on the magnesium refinery business in December 2009. According to the deal, POSCO will build a magnesium refinery plant with annual production capacity of 10,000 tonnes in Gangneung, while the province promises to give all the necessary financial and administrative support, including land and road construction.

Mr Chung Joon yang said that "POSCO will be aggressively pursuing projects, including a magnesium refinery and other functional non-ferrous metals such as titanium, zirconium and silicon, and future materials such as lithium, carbon and nano powders, as the new growth engines for the future growth of the company."

POSCO anticipates that the completion of the new plant will enable it to use the products for its own magnesium sheet plant and sell the rest to local businesses in need of magnesium.