POSCO to increase investments

POSCO to increase investments

According to recent industry news, South Korean steel giant POSCO is planning to invest Won 2.1 trillion ($1.7 billion) on its mills overseas and Won 10.7 trillion ($8.9 billion) on domestic steel production by year 2008. Moreover, production of POSCO is planned to be increased to 10 million metric tons in the next decade. POSCO's investments overseas are including establishment of FINEX mills, which have more advanced steel processing technology and cost reducing property. An official from POSCO stated that the company will focus on Chinese, Indian and Southeast Asian markets to conduct its establishing FINEX mills projects. Moreover, the company will expand its domestic crude steel production to 32 million tons with an increase of 3 million tons by 2008 in the first phase. In the next decade, this amount is planned to be increased to 42.3 million metric tons. When the fact that world's largest steel producer produces 44 million tons per annum is taken into account, with the increase in production capacity, POSCO may be the second largest steel mill in the world. In order to achieve its expansion plans, POSCO will cut costs, improve its productivity and expand the range of products.