POSCO Aims Global 50MT Crude Steel Output

Mr. Joon-Yang Chung, Chairman of POSCO, South Korean integrated steel maker, revealed POSCO reduces operating cost by 1.3 trillion won (approximately 100 billion yen) in 2009 and enhances technology such as the development of steel goods and low-quality material usage to increase international competitive power. Mr. Chung presented to increase consolidated crude steel output to 50 million tonnes at domestic and overseas works and consolidated sales to 100 trillion won in 2018.

Mr. Chung explained POSCO’s basic plan is “open,” “creative” and “environmental” management while POSCO aims global top 3 steel maker toward 2018. POSCO enhances world first and best technology.

Mr. Chung said POSCO isforced to reduce crude steel output for the first time since enterprise inauguration but the firm will be able to gain profits for the second quarter term following the first quarter.

Mr. Chung said East Asian steel market including China, Japan, South Korea and India accounts for 60% in the world, which is expected to represent stronger growth than other areas. POSCO increases crude steel output to 41 million tonnnes per year in South Korea and advances growth strategy by the construction of integrated steel plants in India and Vietnam as scheduled.

Mr. Chung said POSCO advances the integrated steel plant project in India when the firm could get exploration right of iron ore mine. Cold rolling mill in Vietnam will start operation in October on schedule. Mr. Chung explained POSCO is seeking another place for an integrated steel plant in Vietnam when the first potential place was canceled.

Mr. Chung indicated business expansion by M&A. Mr. Chung announced POSCO expands high valued products such as steel sheet for automobiles while increases coil centers to 42 bases from 36 bases at the end of December 2009 and 50 bases in 2011 in the world.

Mr. Chung said POSCO will expand cooperation with Nippon Steel for environment and raw material measures.