Dongbu Metal to spend 300 bln won to boost production

SEOUL, Dec. 23 (Yonhap) -- Dongbu Metal Co., South Korea's largest ferroalloy
firm, plans to spend 300 billion won (US$254 million) to double its production
capacity by next year, company officials said Wednesday.

According to the officials, Dongbu Metal, a unit of Dongbu Group, will have a
capacity of 500,000 tons by the end of next year from the current 230,000 tons.
Dongbu Group has been seeking to sell the unit, spun off in February from
semiconductor affiliate Dongbu HiTek Co., to secure liquidity since last year.
Group chairman Kim Jun-ki said earlier he plans to buy a 50 percent stake in
Dongbu Metal Co. for 350 billion won.
Dongbu HiTek is struggling with some 1.9 trillion won in debt extended by local
lenders including the state-run Korea Development Bank (KDB). The group is
seeking to lower Dongbu HiTek's debt below 400 billion won by selling its
petrochemical unit and other assets.
Dongbu Group has been in talks with KDB to sell the metal unit, but negotiations
have snagged over price differences.
sam@yna.co.kr
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