POSCO to Up Ship Steel Output

POSCO plans to increase production facilities by 2009 to raise its annual production of steel for shipbuilding by 1.1 million tons to address a shortage in the domestic industry, the company said on July 5. POSCO’s annual production capacity of ship steel is projected to rise to 4.7 million tons in the next three years, compared with the current 3.6 million tons, the company said. The steel maker will invest $95.14 m to increase and revamp production facilities. It will also boost productivity of TMCP steel, which provides high strength and welds without heat treatment. South Korea currently imports 500,000 tons of TMCP steel a year, mainly from Japan. POSCO’s move is to relieve shortages in high-quality steel for shipbuilding, offshore platforms and plants. South Korea’s shipbuilding industry is expected to consume 6 million tons of steel this year. With domestic steel makers producing 4 million tons a year, shipyards need to import 2 million tons. (Source: http://times.hankooki.com)