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.