POSCO Estimates USD 1.7 Billion Loss from Typhoon Hinnamnor Damage

It is anticipated that around 1.7 million tonnes of steel production will be affected. POSCO said that it will lose an estimated KRW 2.04 trillion (USD 1.5 billion) of sales as a result of typhoon damage at hot rolling facilities in Pohang in North Gyeongsang, equal to 2.7% of the company's consolidated sales last year. The estimated loss grew as the resumption of stainless cold rolling mill operations was delayed due to the facility being located close to the Nangcheon stream in Pohang.Business Korea reported that South Korean steel giant POSCO is at odds with the South Korean government over the recovery of Typhoon Hinnamnor hit hot rolled steel making lines at Pohang Works. POSCO said that “We will finish drainage and mud removal work as soon as possible, and comprehensively calculate our damage. It is checking items at each plant that require urgent order placement, such as hydraulic tanks, reducers, transformers, and electric motors, and is in discussion with facility suppliers for on-site inspection of core facilities. We will announce the results of the damage calculation and a restoration plan as early as this week. It plans to complete the restoration of the hot-rolled steel sheet manufacturing lines within three months.”On the other hand, South Korea’s Deputy Minister of Trade, Industry & Energy Mr Jang Young-jin had said “POSCO's recovery plan can be achieved if it can bring rolling process transformers from Gwangyang Works to Pohang Works. This is the best-case scenario, but we don’t know what will happen actually, and private sector experts think that it will take more than six months for the plant to recover.”Business Korea quoted some POSCO officials as saying that “It may take one to two years for the rolling facility to be completely restored and roll out products normally. Some of the machinery which became obsolete due to water damage was imported from overseas, so it takes a long time to manufacture and transport it.”

POSCO Estimates USD 1.7 Billion Loss from Typhoon Hinnamnor Damage

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