POSCO focuses investments on R&D activities

POSCO focuses investments on R&D activities

According to the market reports from the industry, South Korean steel maker giant POSCO plans to allocate over Won 2 trillion ($1.7 billion) in research and development (R&D) investments in 2004. Last year, this figure was Won 1.5 trillion ($1.3 billion). POSCO based its decision to make investment in R&D activities rather than in expanding production capacity, on the fact that the capacity of POSCO has almost peaked. Besides, the best way to get ahead of China as it holds price competitiveness in 70% of steel markets worldwide, is to produce high value added steel products that cannot be produced even with lower prices in China. And the company suggests that to achieve this goal they have to focus on R&D activities, covering the modernization of facilities for high value added production. Additionally, it is reported that POSCO may effect investments abroad, particularly in India, Vietnam and Thailand.