Korean steel maker
) aiming to benefit from the growing South East Asian markets,
recently laid the foundation of POSCO SS-VINA in Vietnam through
its operating unit, POSCO Specialty Steel . The plant will be
located at Phu My Second Industrial Zone in Ba Ria-Vung Tau
POSCO-SS VINA will specialize in manufacturing shape steel and
steel reinforcement, having an annual production capacity of one
million tons. The plant will be equipped with one steel
manufacturing mill having 120-tons of molten metal generating
capacity at once and another rolling mill having one million tons
of shape steel, steel reinforcement and bar steel annual production
Construction of POSCO-SS VINA will likely be complete by July
2014. The plant will enable POSCO to capture market requiring steel
reinforcement and shape steel; quite widely used in construction
projects. Government spending on infrastructure development in
Vietnam is rising with an 8% demand increase projected for steel
reinforcement and shape steel in the region.
Apart from the Vietnamese market, POSCO also remains optimistic
about steel consumption in the Korean market, with demand ever
rising from the automotive, construction and shipbuilding sectors
since exports are also expected to play a major growth driving
catalyst. 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 by 10.0%.
The Zacks Consensus Estimate for 2012 and 2013 are at $7.61 and
$8.66, respectively. These represent a year-over-year decline of
29.14% in 2012 and growth of 13.80% in 2013.
POSCO-ADR (PKX): Free Stock Analysis Report
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