Posco's Gwangyang steel mill (Posco)
Posco Group will invest 5 trillion won ($4.1 billion) in Gwangyang, South Jeolla Province, one of the steel giant’s two production bases, for the next three years, according to industry sources Tuesday.
This year alone, an estimated 1.7 trillion won will be invested to beef up production of eco-friendly high-strength steels like electrical steels for cars, as well as to expand overall production capacity at the steelmaking complex in the region.
Sources say the new investment plan comes in an apparent move to soothe possible backlash from the local community over the company’s recent decision to locate its upcoming new holding firm in Pohang, North Gyeongsang Province.
Posco had planned to set up the holding unit in Seoul but ditched the decision amid fierce resistance from residents in Pohang where its headquarters is located. Its Seoul office has played a de facto headquarters role as its key executives, including CEO, work there.
“The new investment in the Gwangyang steel mill is aimed at nurturing new growth engine businesses and accelerating sustainable growth in a rapidly changing business environment,” a Posco official said.
By Hong Yoo (email@example.com