ID :
206743
Tue, 09/13/2011 - 06:31
Auther :
Shortlink :
https://oananews.org//node/206743
The shortlink copeid
POSCO agrees to buy into Pakistani steelmaker
SEOUL (Yonhap)- South Korea's largest steelmaker POSCO said Tuesday it has signed a deal to purchase a stake in a Pakistani steel company, paving the way for tapping into the South Asian country.
Under the deal with Al Tuwairqi Holding signed on Saturday, POSCO will spend US$15 million to buy a 15.34 percent stake in Tuwairqi Steel Mills Ltd. (TSML), the sole maker of direct-reduced iron (DRI) in Pakistan, POSCO said.
DRI, also called sponge iron, is produced from direct reduction of iron ore by a reducing gas produced from natural gas or coal. It is used as a substitute for iron scrap.
TSML has an annual DRI production capacity of 1.28 million tons and plans to start full-fledged commercial operations in January next year.
The stake purchase will not only contribute to garnering dividend income but also help the company expand its business in Pakistan, said POSCO, also the world's third-largest steelmaker.
"The contract will help POSCO secure a footing in Pakistan and expand operations of POSCO subsidiaries," Chung Joon-yang, chief executive of the company, was quoted as saying.
Chung predicted that steel demand in Pakistan, the sixth most populous country in the world, will likely surge to 12 million tons by 2020 from last year's 7 million tons.
Under the deal with Al Tuwairqi Holding signed on Saturday, POSCO will spend US$15 million to buy a 15.34 percent stake in Tuwairqi Steel Mills Ltd. (TSML), the sole maker of direct-reduced iron (DRI) in Pakistan, POSCO said.
DRI, also called sponge iron, is produced from direct reduction of iron ore by a reducing gas produced from natural gas or coal. It is used as a substitute for iron scrap.
TSML has an annual DRI production capacity of 1.28 million tons and plans to start full-fledged commercial operations in January next year.
The stake purchase will not only contribute to garnering dividend income but also help the company expand its business in Pakistan, said POSCO, also the world's third-largest steelmaker.
"The contract will help POSCO secure a footing in Pakistan and expand operations of POSCO subsidiaries," Chung Joon-yang, chief executive of the company, was quoted as saying.
Chung predicted that steel demand in Pakistan, the sixth most populous country in the world, will likely surge to 12 million tons by 2020 from last year's 7 million tons.
