Thursday, April 29, 2010

POSCO : one of the Korean valuable asset.

South Korea's POSCO is one of the biggest giant steel company in the world.

The Pohang Iron and Steel Company, or POSCO is based in Pohang, South Korea. It is the world's second largest steel maker by market value[1] and Asia’s most profitable steelmaker.With the strong Korean shipbuilding and automobile industry dependent on POSCO for steel, POSCO has been seen as the bedrock of Korea's industrial development over the past 40 years.

With increasing global competition, POSCO looked to China and India for new opportunities and trying to expand its own reach. By 2006, POSCO had 26 subsidiaries and invested over $2.4 billion in fresh investment on mainland China, especially in galvanized and stainless steel to supply global auto and appliance makers that have opened plants there. In 2006, POSCO started operating the Zhangjiagang Pohang Stainless Steel(ZPSS) steel mill capable of producing 600,000 tons of stainless steel and hot-rolled products annually in China’s Jiangsu Province (according to the wikipedia source).

As a result, POSCO became the first foreign firm operating an integrated stainless steel mill in China, handling the entire production process from smelting iron ore to finished products, including the cold rolled stainless plant it already operates.

We can say that size does not matter if you have will and ability to do something like South Korea which is small in size and neighbouring with the powerful countries like China, japan, Russia . Although, South Korea is growing faster.

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