Reuters said that POSCO Co. Ltd. said on Friday it would invest a total of $2b to boost output of steel plates for ships as the booming shipbuilding industry led to higher demand for the product.
POSCO , the world's fourth-largest steel maker, said in a statement it would spend $1.96b to build a new domestic plant and related facility to produce steel plates.
The plant, which will have a capacity of 2 million tonnes a year, will be completed by July 2010.
With the new plant and planned upgrades to its existing facility, POSCO plans to raise its steel plate output to 7 million tonnes a year in 2011 from 3.8 million estimated for this year, the company said.
The decision comes as surging demand for steel plates from shipbuilders and heavy industry companies keep prices firm.
POSCO on Monday reported its quarterly profit jumped 55 percent on strong demand and raised its 2007 profit and sales forecasts. percent gain. ($1=915.6 Won)