South Korea's largest steelmaker POSCO is considering buying local shipping and freight company Daewoo Logistics Corp. (Daewoo) as part of its efforts to secure stable shipments of raw materials and steel products.
"We are reviewing a plan to buy Daewoo, but nothing has been decided yet," a POSCO spokesperson confirmed.
Daewoo Logistics, established in 1999, is a medium-sized shipping line. The company suffered a loss of KRW 4.8 billion (US$3.8 million) in 2008 due to the global economic slump and falling shipping rates.
POSCO spends around KRW 700 billion (US$560 million) annually in exporting steel products and importing iron ore and other raw materials.
US$1 = KRW 1,248.33