Chinese steel producer Chongqing Iron and Steel Co. has signed a memorandum of understanding (MOU) with South Korean steel giant POSCO for the establishment of a 50:50 steelmaking joint venture, as announced on Monday, September 23 by POSCO and by Chinese media sources. The joint venture facility is to be built in the city of Chongqing in China and will have an annual steel output capacity of 3 million mt, while it will also use POSCO's FINEX steelmaking technology, which reduces production costs and gas emissions. The two companies are also considering setting up a joint venture for the production of steel sheets for the automotive sector.