POSCO to delay facility expansion on weak demand

SEOUL, Nov. 12 (Yonhap) -- POSCO, South Korea's leading steelmaker, said Thursday
that it plans to delay completion dates for some plants in the country as it is
unclear whether steel demand will be strong enough to support facility expansion.
According to the steelmaker, it plans to complete the 1.93 trillion won (US$1.66
billion) plant in Gwangyang by September, 2012, nine months later than the
previous target of the end of 2011.
POSCO also plans to put off completion of two other production facilities worth
568 billion won that can produce galvanized steel sheets. The construction of
these plants will be put off by one year to March 2012, it said.
"Global steel demand may not recover as previously expected... we need to be
flexible to cope with changing business conditions," said a company official.
"But investment projects will be conducted as planned."
sam@yna.co.kr
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