The nation’s top steelmaker POSCO is to export a self-developed steel technology to China by building an overseas special steel manufacturing site there, jointly with a local partner.

The company on Sunday signed a memorandum of understanding with China’s Chongqing Iron & Steel to build an integrated steel mill based on Finex technology, a steelmaking process developed by POSCO back in 2007.

“Finex technology helped POSCO become one of the most remarkable steel frontrunners,” said an official. “Not only is Korea the world’s top steel-consuming country, but it has now proven itself to be a steelmaking technical pioneer as well.”

Finex technology, which produces molten iron by directly using iron ore fines instead of using conventional blast furnaces, may trim costs by up to 15 percent and industrial dust scattering by up to 72 percent, according to officials.

Once they obtain the ratification of the Chinese government and the export approval of the Korean government, hopefully by the end of next year, the two steelmakers are to start building the 3-million-ton facility in western China.

(tellme@heraldcorp.com)