News Room - Steel Industry

Posted on 22 Oct 2007

POSCO, Nippon Steel to form jv in S. Korea

POSCO Co., South Korea's largest steelmaker, said today it would form a joint venture with Japan's Nippon Steel Corp. to build a rotary hearth furnace in its main plant in southern South Korea.

The furnace, which will set up in January next year in Pohang, 374 kilometers south of Seoul, is the first manufacturing venture between POSCO and Nippon Steel, which formed a strategic alliance in August 2000 to fend off foreign hostile takeover bids.

POSCO said it would own 70 per cent of the joint venture with paid-in capital of 39 billion won (US$42.5 million). Nippon will hold the remaining shares.