POSCO Plans Total 10MT Capacity Expansion with Offshore New 3 Iron Works

POSCO, South Korean largest steel maker, will expand its output capacity by total 10 million tonnes per year with new 3 iron works at overseas after 3 years. The firm aims to follow steel demand growth in Asia with additional capacity. POSCO starts construction of a new iron works in Indonesia this month, whose output capacity is 3 million tonnes per year in the first phase. In India, the government is expected to announce investigation result for POSCO’s land acquisition in Orissa in October. In addition, POSCO plans to conclude memorandum of understanding to start joint venture with Steel Authority of India (SAIL), Indian largest steel maker, within this year.

The new iron works in Indonesia is scheduled to expand the capacity to 6 million tonnes per year until late 2013. In Orissa of India, POSCO intends to start construction of a new iron works with 4-million-tonne annual output capacity in the first phase. The capacity is scheduled to expand to 12 million tonnes at maximum. As to joint business with SAIL, POSCO will complete feasibility study for a new iron works in October. The iron works will have 3-million-tonne annual output capacity in the first phase mainly with FINEX process. The companies are expected to conclude a formal joint venture contract in January-March 2011.

POSCO aims to expand its crude steel output to above 60 million tonnes per year in 2018. Overseas capacity is planned at approximately 20 million tonnes.