South Korea’s leading steelmaker Posco will nearly triple its investment over the next five years to 45 trillion won ($40.5 billion) and hiring to 20,000 to stay ahead in the traditional steelmaking competition and develop new materials for future growth engines, the company said on Monday.
Its pledged amount is 2.5 times more than the 18 trillion won spending from 2014 to 2018 and payroll addition of 7,000 during the past five years.
Shares of Posco finished Monday 2.1 percent lower at 319,500 won.
Under the 2019-2023 investment plan, Posco will scale up its mainstay steel business, explore new growth businesses, and promote environmentally-friendly energy and infrastructure projects.
The company will invest 26 trillion won in bolstering its steelmaking capabilities including a new by-product gas power facility to maximize energy efficiency of steel mill, a facility dedicated to giga steel, and upgrade in third blast furnace of its steel mill in Gwangyang, South Jeolla Province.
Posco will also spend 10 trillion won on boosting efficiency of its lithium extracting technology and building new facilities in electrodes at home and abroad to establish mass production system in lithium battery materials sector.
Another 9 trillion won will be spent on energy infrastructure business that includes clean power development and carrying out environmentally-friendly energy projects such as solar power. The investment will also be spent on expanding facility of its Myanmar gas field.
Posco Chairman Choi Jeong-woo said that the latest investment plan was necessary to take one step ahead to become a leading player in the global steel industry and the era of fourth industrial revolution.
By Kang Doo-soon and Lee Eun-joo
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