POSCO says no output reduction in H2

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SEOUL, July 21 (Yonhap) -- POSCO, South Korea's leading steelmaker, said Tuesday
it has no plans to cut output in the second half of the year, and instead will
raise its production by 6.4 percent on expectations of a pick-up in demand.

"We do not plan to cut production," said a company official, "but neither do we
have plans to upgrade our facilities."
Earlier in the day, the steelmaker restarted its No. 4 furnace in the
southwestern city of Gwangyang after maintenance and expansion, taking advantage
of a slight rise in demand as customers have started restocking. The furnace,
capable of turning out 5 million tons of steel annually, was closed in February.
With the furnace resuming operations, the steelmaker's annual production capacity
will increase to 35 million tons. The company said it is expecting to produce
29.8 million tons of steel this year, compared with an earlier estimate of 28
million tons.
Last week, the steelmaker reported a net income of 431 billion won (US$344
million) during the second quarter of this year, a 71 percent drop from a year
earlier brought on by a sharp fall in prices and rising raw materials costs.
Sales for the quarter ending June 30 fell 15 percent to 6.34 trillion won.
In December, POSCO cut output for the first time in its 41-year history in
December. Demand for steel has been particularly hard-hit by the global economic
crisis, which has sapped builders and automakers.
POSCO said its earnings will rebound in the second half on lower materials costs,
rising production and exports.
sam@yna.co.kr
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