Purchase of Thainox by POSCO Delays

POSCO aims to complete the acquisition of Thainox, stainless steel cold rolling mill in Thailand until the end of June, Mr. Choi Jong-tae, the president of POSCO commented at profit announcement for January-March held on Tuesday. The purchase of Thainox by POSCO delays due to the price issue and the political problem in Thailand. However, POSCO increases cold rolled stainless supply by expansion of cold rolling mill in Vietnam when the firm does not purchase Thainox.

POSCO plans to introduce third FINEX, which has 2 million tonnes of manufacturing capacity per year, in Pohang steel works, Mr. Choi said. The first FINEX has 600,000 tonnes of annual capacity and the second is 1.5 million tonnes. There has been no official decision. However, the firm would replace the small blast furnace by FINEX.

The construction of integrated steel works in Orissa, India and Indonesia would start in the second half, Mr. Choi said. POSCO starts the land leveling in India within a month after receiving the Supreme Court endorsement of iron ore mining. The firm establishes the joint venture in Indonesia with Krakatau Steel in July and starts the construction of the steel works at the earliest September. POSCO sent the letter of intent to Karnataka state government in India to establish the steel works. However, the firm receives no reply from the government.