POSCO recently signed an agreement to acquire shares of a Pakistani steelmaker in an effort to establish a position for itself in the country. The company will soon be acquiring about 15.34% interest in Pakistan’s sole sponge iron producer, Tuwairqi Steel Mill.

The mill is owned by Al Tuwairqi Holding and has annual production capacity of 1.28 million tonnes of sponge iron. Commercial production at the mill is expected to begin by January 2012. Sponge iron is used as an alternative material to iron scraps in the steelmaking process.

POSCO’s entry into the Pakistani steel industry demonstrates the company’s efforts in expanding worldwide. Pakistan, the sixth populous country in the world, is expected to show roughly 71% increase in steel demand between 2010 and 2020.

Also, recently, POSCO P&S’ local subsidiary POS GSFC joined hands in the construction of an oil storage tank in Abu Dhabi. The project, known as IRP 2 project was ordered by Abu Dhabi National Oil Company’s subsidiary Takreer and includes EPC contractor GS Construction. POSCO’s subsidiary will provide steel plates for storage tanks to be installed at key locations.

(Sourced from www.dailymarkets.com)