{"id":192050,"date":"2010-01-17T13:50:00","date_gmt":"2010-01-17T18:50:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-3322064532652648061"},"modified":"2010-01-17T13:54:33","modified_gmt":"2010-01-17T18:54:33","slug":"benzinga-korean-steel-major-planning-record-investment-eyes-daewoo-acquisition","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/192050","title":{"rendered":"BENZINGA: Korean Steel Major Planning Record Investment, Eyes Daewoo Acquisition"},"content":{"rendered":"

Posted on 01\/17\/10 at 8:11am by Lisa Bloom<\/span> <\/p>\n

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Posco(NYSE:PKX<\/a>), Asia\u2019s most profitable steelmaker and Korea\u2019s leading steelmaker, is planning<\/nobr><\/a> its largest annual investment ever in a move to capitalize on chances offered by the end of the economic crisis.<\/p>\n

The company will invest $8.3 billion (9.3 trillion won) this year, including 3 trillion won that could be used in aggressive mergers and acquisitions. <\/p>\n

\u201cWe will continue our cost cutting in preparing for an extended recession while at the same time pursuing aggressive management to seize opportunities in the post-crisis period,\u201d said Posco Chairman Chung Joon-yang.<\/p>\n

Chung told reporters that POSCO is more interested in buying Daewoo International than in other local firms like Daewoo Engineering & Construction because it wants to create synergy in overseas resources development and materials business. <\/p>\n

Daewoo Shipbuilding shares increased 13.69 percent, Daewoo International shares were up 1.77 percent and Daewoo Engineering rose 2.37 percent, following the announcement by POSCO.<\/p>\n

Meanwhile, Posco posted the highest net income in six quarters and said capital expenditure will soar to a record this year as demand rebounds with the global economic recovery.<\/p>\n

Net income advanced to 1.28 trillion won ($1.1 billion) in the three months ended Dec. 31, from 721.4 billion won a year earlier, according to calculations derived from full-year results released. Spending for 2010 will reach 9.3 trillion won, and sales will surge 9.3 percent, it said.<\/p>\n

The global steel market has bottomed and will grow by 9.2 percent in 2010 as demand rebounds in the U.S., Europe and Japan, the World Steel Association said Oct 12. Posco is planning $30 billion of overseas expansion in India, Indonesia and Vietnam to regain its spot as Asia\u2019s largest steelmaker.<\/p>\n

\u201cPosco was able to recover faster than anybody in the market,\u201d the company said in the statement. \u201cWe weathered the crisis by cutting output by only 20 percent in the first half, while global rivals had to cut by more than 40 percent.\u201d<\/p>\n

Shares of Posco, which counts Warren Buffett\u2019s Berkshire Hathaway Inc.(NYSE:BRK.A<\/a>) as a stakeholder, fell 0.7 percent to close at 592,000 won in Seoul trading. They rose 63 percent last year compared with an 89 percent gain in ArcelorMittal(NYSE:MT<\/a>), the world\u2019s largest steelmaker.<\/p>\n

In 2010, POSCO plans to refurbish the No 4 blast furnace in Pohang, complete a steel plate mill in Gwangyang, seek merger and acquisition opportunities in the local market and accelerate procedures to build steel plants in India and Indonesia.<\/p>\n

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