South Korean steelmaker POSCOis planning to invest about US$19 million to build a new wire-rod processing plantin in Jeffersonville, Ind., in order to boost supplies to U.S. carmakers, The Korea Herald reported April 4, citinga company representative.
The plant will cover a 34,000-square-meter area and will havean annual production capacity of 25,000 tons of steel wire-rod products. Constructionis scheduled to begin this month and end in March 2017.
According to the official, the company is in talks with the stategovernment for the construction of the plant.
"The latest push implies that the steelmaker is shiftingits focus from the struggling shipbuilding industry to the relatively more boomingand profitable auto industry," said Park Sung-bong, an analyst from Hana FinancialInvestment.
In early March, POSCO signed a memorandum of agreement with Iraniansteelmaker Pars Kohan Diar Parsian Steel toconstruct an integrated steel mill capable of producing 1.6 milliontons per year in Iran.