Dongbu Group to invest 1 tln won in steel business

SEOUL, Jan. 15 (Yonhap) -- Dongbu Group plans to spend 1 trillion won (US$891
million) this year to boost its steel production capacity, its chairman said
Friday.

"We need to spend around 3 trillion won in the future, and 1 trillion won will be
spent this year," Dongbu Group chairman Kim Jun-ki said on the sidelines of a
meeting with other businessmen.
The group is planning to raise production capacity of Dongbu Metal Co., South
Korea's largest ferroalloy firm, to 500,000 tons from the current 230,000 tons.
Also, it is seeking to boost production capacity of its steelmaking unit, Dongbu
Steel Co.
Dongbu Group has been seeking to sell the metal unit, spun off in February from
semiconductor affiliate Dongbu HiTek Co., to secure liquidity.
Group chairman Kim Jun-ki said earlier he plans to buy a 50 percent stake in
Dongbu Metal Co. for 350 billion won.
Dongbu Group has been in talks with state-run Korea Development Bank to sell the
metal unit, but negotiations have snagged over price differences.
sam@yna.co.kr
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