Due to global economic uncertainty, weak demand in the steel markets and its lower profits, major South Korean steel producer Pohang Iron and Steel Co. (POSCO) plans to reduce its capital expenditure for the current year by 14 percent from $6.3 billion to $5.42 billion.
Recently, POSCO has decided to delay certain domestic and foreign investment programs based on the current economic conditions.
Meanwhile, however, POSCO and Indian state-run steelmaker SAIL are expected to sign a joint venture agreement in November this year for the establishment of a 3 million mt annual capacity steel plant in Bokaro in eastern India, at a cost of Rupee 160 billion ($3.24 billion). The two sides have not yet achieved an agreement on stock equity. POSCO insists on a majority stake, but SAIL insists on equal shares.