On Thursday, South Korea's top steelmaker POSCO signed a deal to set up a joint venture with Columbia-based Blue Pacific Assets Corp. to extract iron ore and coal in the South American country. No details on the value of the project were released.
Additionally, POSCO also said it has agreed to establish a facility with Colombian auto parts producer Fanalca S.A. to manufacture large-diameter steel tubes, at an annual capacity of 200,000 metric tons per year.
With the establishment of these ventures, POSCO--the world's fourth-largest steelmaker--aims to both secure raw material supplies and fortify its presence in the burgeoning Latin American region, while also paving the way for its subsidiaries to embark on infrastructure projects.
"POSCO will provide a springboard for Colombia's industrial and economic development," said Chung Joon-yang, CEO of POSCO, in a statement.