POSCO mulls takeover of Vietnamese steelmaker

SEOUL, July 16 (Yonhap) -- POSCO, South Korea's leading steelmaker, said Thursday that it is seeking to take over a Vietnamese steelmaker as part of efforts to meet growing demand in the Southeast Asian region.

"We are considering acquiring Asia Stainless Corp., but nothing has been decided
yet," said a POSCO official.
Industry sources projected that POSCO may spend US$50 million in its takeover of
the Vietnamese stainless-steel maker, which produces around 90,000 tons of
stainless steel annually.
Earlier this year, POSCO chief executive officer Chung Joon-yang said the company
would seek to take over a series of firms both at home and abroad on the back of
ample cash supplies estimated at more than 4 trillion won.
In May, the company purchased a local stainless-steel maker.
Meanwhile, it is currently building a cold-rolled steel mill in the Southeast
Asian nation. When complete, the plant in Vietnam will produce 1.2 million tons
of cold-rolled steel a year.
Shares of POSCO were trading at 450,000 won on the Seoul bourse as of 9:18 a.m.,
up 1.81 percent.