Dongkuk Steel starts building 470 bln won plant

SEOUL, Sept. 23 (Yonhap) -- Dongkuk Steel Mill Co., South Korea's third-largest steelmaker, said Wednesday that it has started building a 470-billion won (US$393million) plant to replace outdated facilities and increase production.

The plant, located in Incheon, west of Seoul, will have a 1.2 million metric
ton-a-year electrical furnace, when it is completed by 2012. The plant's annual
capacity will expand to 2.2 million tons from the current 1.6 million metric tons
a year after shutting down old facilities, according to the steelmaker.
Separately, Dongkuk Steel is building another steel plant with an annual capacity
of 1.5 million tons in the nation.
Dongkuk said its total annual output will rise to 8.5 million tons from 6 million
tons, when the two new plants are completed.
South Korean steel mills such as POSCO are preparing for a recovery in demand as
the global economy emerges from its severe slump.
sam@yna.co.kr
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