S. Korean steelmakers plan to boost spending by 42 pct: poll

SEOUL, June 9 (Yonhap) -- POSCO, Hyundai Steel Co. and other South Korean
steelmakers plan to spend more than 10 trillion won (US$7.97 billion) this year
to improve and expand their facilities amid the economic downturn, a survey
showed Tuesday.
According to the poll conducted by the Korea Iron & Steel Association, 33 local
steel mills said they will invest a combined 10.12 trillion won this year for
facility expansion, up 41.6 percent from last year.
Their combined steel output is expected to reach 64.17 million metric tons this
year, compared with last year's 60.14 million tons, according to the association.
"The record capital spending will help local steelmakers benefit most when the
economy is on a course to recovery," the association said in a statement.
South Korean steelmakers suffered a drop in their profits in the first quarter of
the year due to sluggish demand from automakers, builders and electronics
companies, and high costs of raw materials
POSCO, the world's fourth-largest steelmaker, posted its largest profit drop in
eight years in the January-March period.
sam@yna.co.kr
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