South Korea’s largest steel making company POSCO Limited would invest $200 million for the expansion of Tuwairqi Steel Mills. A delegation on Friday lead by Baek, senior vice president of Pohang Iron and Steel Company, (POSCO) Limited stated in a meeting with Chairman BOI Saleem Mandviwalla, while he visited Board of Investment (BOI).
Baek said that the POSCO Engineering and Construction unit would build the plant with the side aim of winning other such plant deals in Pakistan. He said current annual steel production of POSCO is around 37 million tonnes whereas its revenues stood at $45 billion last year. The Chairman BOI said that South Korea’s POSCO, the world’s number four steelmaker, plans to invest $200 million to expand the production capacity of Tuwairqi steel plant in Port Qasim Karachi. In this regard, a Memorandum of Understanding (MOU) for a joint venture between Posco and Saudi Arabia based Tuwarqai would be signed by next month in the presence of the Sindh government officials.
The joint venture of the companies would produce steel products for automobiles and construction goods and is set to be completed in 2015 with an annual production capacity of 2 million tonnes, he said. The Chairman said that POSCO will be a great success in Pakistan, in monetary terms and as a technology leader in the steel sector from which Pakistan can benefit to a large extent. The gap between demand and supply is met through imports and the demand for steel products is around 8 million tonnes against the supply of around 2 million tonnes, he said.