POSCO-CFPC, a processing entity of Korean steel maker
), recently declared a positive end to its efforts to provide
various high quality services to its clients through its
The center, located in Huanan, China, started its operation in
2004 with a capital base of $22.3 million, and it has several
functional units such as Production, Carbon Steel Sales, Stainless
Steel Sales, QSS Innovation and Management.
POSCO-CFPC's sole purpose is to enhance the company's presence
in China by establishing a supply chain for POSCO's manufactured
steel products, along with lending support to its clients through
several types of financial and operational assistance. Moreover,
POSCO-CFPC has the capacity to process 100,000 tons of STS
materials and 120,000 tons of carbon steel yearly through its two
well-managed processing lines.
POSCO-CFPC is engaged in the promotion of numerous local brands
in the Huanan province through establishing strategic partnership
agreements with various major companies of the electronics
industry, such as Midea, HITACHI, GLANZ and Vanward. Apart from the
business perspective, the company is also highly dedicated to
creating social awareness across the region.
The company's brand acquisition strategy, sales execution,
marketing and innovation capabilities helped to establish itself as
the world's third largest steelmaker and market leader in the
industry. In addition, the company is continuously strengthening
its foothold in the Chinese market through expanding its
operations; it currently has 20 processing centers across
Steel demand in China is expected to grow by 4.0% year over year
both in 2012 and 2013, according to the World Steel Association. To
meet this end, the company will soon be launching a new processing
center focused on galvanized steel sheets and steel alloy sheets in
Foshan, Guangdong Province. For 2012, the company anticipates a
2.5% increase in revenue to KRW 70.6 trillion. Crude steel
production is projected to rise 3.0% while investments should rise
by 10.0%. However, it faces stiff competition from rivals such as
Grupo Simec S.A.B. de C.V.
Shiloh Industries Inc.
The Zacks Consensus Estimates for 2012 and 2013 are at $7.61 and
$8.66, respectively. These represent a year-over-year decline of
29.14% in 2012 but a growth of 13.80% in 2013. We currently
maintain an 'Underperform' recommendation on POSCO. The steel giant
has a Zacks #4 Rank, translating into a short-term (1-3 months)
CLARCOR INC (CLC): Free Stock Analysis Report
POSCO-ADR (PKX): Free Stock Analysis Report
(SHLO): ETF Research Reports
GRUPO SIMEC SA (SIM): Free Stock Analysis
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