Heavy Investment in Steel
- Steelmakers plan to invest 4.5 tln won in steel facilities

Facility investment in the steel industry is projected to reach the highest level since 1996, according to a recent survey made by the Korea Iron and Steel Association.
The survey showed that 33 steel makers said their investment in facilities this year would total around 4.5 trillion won, up 75 percent from 2004.
The association said the investment figure is up because a number of steel makers plan to expand their steel making facilities including POSCO building its FINEX facility, Dongbu Steel expanding its lead alloy steel facility, INI Steel and Hyundai Hysco's additional investment to normalize the operation of the Tangjin plant, formerly Hanbo Steel. To review the investment plan by the steel sector, POSCO plans to build the FINEX steel production facility capable of turning out 1.5 million tons of crude steel a year and expand its coke production facility with an investment of 2.8 trillion won, up 48 percent from last year.
The electric-furnace steel makers, INI Steel plans to normalize its Tangjin plant, Changwon Special Steel and SeAh Besteel will expand their production facilities with a fund totaling about 1 trillion won.
POSCO, Dongbu Steel, and Pohang Steel Plate will invest some 500 billion won to expand their lead alloy steel plate production facilities up 7.3 percent from last year. Steel wire makers such as Koryo Steel plans to expand its Pohang plant with a fund totaling 41.4 billion won, up 116 percent from last year.
Facility investment for new lead alloy steel production facility and expansion would take up 60 percent of total investment in steel production facilities amounting to over 2.6 trillion won.
To cope with various problems related to environment with the enforcement of Kyoto protocol, the steel makers will invest some 321 billion won to prevent air pollution and energy savings.
Investment in R&D will likely surpass 400 billion won, up 25 percent from last year with POSCO to increase its investment in the commercialization of FINEX and strip cast and SeAH Besteel and Koryo Steel expanding its investment to develop steel products that go into large steel structures.
The association said the sale of Hanbo Steel removed a problem in the way of restructuring the steel industry and steel makers would not have to focus their efforts to develop high value-added products while taking into consideration the Kyoto protocol and environmental problems when making facility investment. The association urged its member steel firms to set aside funds for investment in R&D to secure competitive technology to continue to remain best in the world steel industry.
In the meantime, the association opened the Trade Regulation Assistance Center to facilitate the creation of fair trading environment for the steel industry.
The center will lend a hand to solve various problems nagging domestic firms such as dumping, infraction of intellectual property rights.
Association officials said the center can be of service to those firms that cannot take advantage of the existing trade regulation assistance system due to the lack of professional knowledge.
According to a recent survey by the Ministry of Commerce, Industry and Energy, around 44 percent of companies in the country have problems due to imported goods with only 13 percent aware of the trade regulation assistance system.
Attending the opening ceremony of the center included Shim Yoon-soo, vice chairman of the Korea Iron and Steel Association, fourth from left, and Huh Bom-do, member of the Trade Committee, third from left, and around 30 steel industry people. nw