September 26, 2017 3:58 am JST

Posco opens steel-processing center in Indiana

Steelmaker hopes to encourage South Korean investment in US

KENICHI YAMADA, Nikkei staff writer

Cutting the ribbon at the opening ceremony of the new Posco plant.

SEOUL -- Posco has opened a steel wire processing center in the American state of Indiana amid discontent in Washington over the trade deficit with South Korea.

The $20.9 million plant with an annual capacity of 25,000 tons marks Posco's second processing center abroad, after a facility in Mexico. It will handle steel wire for bolts, nuts and bearings used in autoparts, electronics, manufacturing machinery and elsewhere. The new plant will supply Japanese automaker Nissan Motor as well as South Korean manufacturers in the U.S.

Posco CEO Kwon Oh-joon celebrated the opening in person Friday with Indiana Gov. Eric Holcomb and a crowd of roughly 150. Kwon expressed hope that the investment will encourage other South Korean companies in American expansion and aims to localize operations as a South Korean company with significant earnings from the U.S. market.

South Korea's steelmakers exported 3.74 million tons of steel to the U.S. last year, accounting for 12% of the East Asian country's total steel exports. America is second only to China, accounting for 15%. The U.S. moved earlier this year to impose anti-dumping duties on phosphor copper from South Korea.

Asia300

POSCO

South Korea

Market(Ticker): KRX(005490)
Sector:
Industry:
Non-Energy Minerals
Steel
Market cap(USD): 26,500.07M
Shares: 87.18M

Nissan Motor Co., Ltd.

Japan

Market(Ticker): TKS(7201)
Sector:
Industry:
Consumer Durables
Motor Vehicles
Market cap(USD): 41,002.50M
Shares: 4,220.71M

Get Insights on Asia In Your Inbox

To read the full story, Subscribe or Log in

Get your first month for $0.99

Redeemable only through the Subscribe button below

Once subscribed, you can…

  • Read all stories with unlimited access
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

Resubscribe now to continue reading.
BEST OFFER:
Only US$ 9.99 per month for a full-year subscription

To read the full story, Subscribe or Log in

Once subscribed, you can…

  • Read all stories with unlimited access
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.