December 02, 2008

POSCO to set up new plate mill to add SBQ capacity

It is reported that POSCO is planning to spend KRW 1.8 trillion (USD 1.78 billion) on building a plant that would produce heavy steel plates to meet rising demand from shipbuilders.

POSCO in a statement said that the plant, whose construction is scheduled to be completed by July 2010, will have the annual production capacity of 2 million tonne of heavy plates used mainly for shipbuilding.

It said that once the plant starts production in 2011, POSCO's annual output of heavy plates will rise to 7.25 million tonne from the current 4.3 million tonne making the company the biggest manufacturer of the product.

POSCO estimates that South Korean demand for heavy plates will rise to 16 million tonnes in 2011 from 10.7 million tonne in 2007, while the nation's output will increase 88% to 13 million tonne over the same period. It said that consequently, South Korean shipbuilders will face a 3 million tonnes shortage of steel in 2011.