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Posco to Add FINEX Plant, Wire Rod Plant, Stainless Steel Plant

Posco announced plans to establish its fourth FINEX plant, third wire rod plant and a new stainless steel plant. The announcement follows an approval from the board of directors that was reached during a meeting held on March 25th.

If construction on these plants begins this year, the company expects it could generate as much as 1.25 million man-days of employment, enough to revitalize the local economy. The investment would also significantly increase the competitiveness of Pohang Steelworks through the replacement of aged equipment.

Posco plans to start construction of the third FINEX plant In June. The plant, which is to have a production capacity of 2 million tons, is scheduled for completion in June of 2013. It will employ FINEX, a next-generation green ironmaking process developed by Posco, which offers a 20% reduction in facility investment costs and a 15% reduction in operation costs, ultimately increasing cost competitiveness of molten iron production.

The third FINEX plant will meet the Pohang Works’ increased demand for molten iron that will result from start-up of the fourth wire rod plant and 400 series stainless steel manufacturing facilities.

Construction of the Pohang Works’ fourth wire rod plant, which will have a 700,000-ton annual production capacity, is to start in December be completed in May of 2013. Korea imported approximately 1.24 million tons of wire materials last year and the shortage is expected to increase to 1.7 million tons by 2012. The fourth wire rod plant is expected to relieve the demand shortage for small and medium-sized wire rod companies.

Construction of the new stainless steel plant, which will produce 400 series grade stainless steel products, is also to start this coming December for completion in February 2013. This project will renovate the current no. 1 carbon steelmaking plant to a 400 series stainless steel specialized plant. Annual manufacturing costs for the new plant are expected to be reduced by 80 billion KRW.