POSCO weighs buying local shipping line

SEOUL, May 21 (Yonhap) -- POSCO, South Korea's largest steelmaker, said Thursday
it is considering buying a local shipping company as part of efforts to secure
stable shipments of raw materials and steel products.
"We are reviewing a plan to buy Daewoo Logistics Corp.," said an official at
POSCO. "But nothing has been decided yet ... it is an initial stage."
Daewoo Logistics, established in 1999, is a mid-sized shipping line. The company
suffered a loss of 14.8 billion won last year on the back of the global economic
slump and falling shipping rates.
POSCO spends around 700 billion won (US$562 million) annually in exporting steel
products and importing iron ore and other raw materials.
Earlier this month, POSCO, the world's fourth-largest steel mill, said it would
buy a local stainless steelmaker in a bid to ease a supply glut in the domestic
steel market, marking its first merger and acquisition of the year.
Earlier this year, POSCO chief executive officer Chung Joon-yang said the company
would seek to take over a series of firms both at home and abroad this year,
making use of ample cash supplies that are estimated at more than 4 trillion won.
Shares of POSCO were trading at 409,500 won on the Seoul bourse as of 10:45 a.m.,
down 2.38 percent.
sam@yna.co.kr
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