The South Korean delegation, on Monday, while visiting the Engineering Development Board (EDB) was given a detailed briefing about the current status of the local steel industry and future growth prospects. South Korean manufacturer of iron and steel, Pohang Iron and Steel Company, POSCO, has signed a joint venture agreement with Tuwairqi Steel Mills (TSML) for investing $15 million in the Direct Rendering Infrastructure (DRI) project of TSML by subscribing 15.3 per cent newly issued common shares.
Subsequent to commercial operations of the DRI project, POSCO is keen on the forward and backward integration of the project by investing in the steel melting and mining sectors through increasing its shareholding in TSML up to the threshold level of 50 per cent. The move will eventually result in huge foreign equity inflow to build a state-of-the-art integrated project in the country along with creation of tremendous employment opportunities. Later, a visit of the South Korean delegation to Tuwairqi Steel Mills was also arranged by EDB. A two member team of TSML accompanied the Chief Minister of Sindh during his visit to South Korea as a follow-up of the discussions between the two steel manufacturers. After conducting due diligence, POSCO has finally agreed to conclude a formal joint venture agreement with TSML.
