The largest South Korean steelmaker POSCO has announced the commencement of construction works at its new steel plate plant at Gwangyang Steelworks. The total investment in the project amounts to $1.8 billion.
The new steel plate plant with a planned annual capacity of two million mt, combined with the integration of other capacities, will allow POSCO to increase its plate production from 4.3 million mt in 2007 to 7.25 million mt by 2011, making the company the world's largest producer of steel plates for which there is increasing demand.
The construction of the plant is scheduled to be completed in July 2010.
Moreover, with the construction of the new steel plate plant, along with the previously announced construction of the new steelmaking plant at Pohang Steelworks, POSCO will be able to raise its annual crude steel production from 31 million mt in 2007 to 40 million mt by 2011, thereby becoming the world's second largest steelmaker, just after ArcelorMittal.
POSCO's investment budget for this year is estimated to be $6.6 billion, including $3.2 billion for the construction of the two above mentioned plants, which will produce steel for the needs of shipbuilding and heavy industry.