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Posco to shut aging furnace as coronavirus erodes steel demand

Built in 1973, Pohang facility is South Korea's first integrated mill

A Posco steel mill in the South Korean city of Pohang: The company aims to boost productivity by closing or updating older facilities. (Photo courtesy of Posco)

SEOUL -- Posco will close a nearly 50-year-old furnace in its home city next year, the South Korean steelmaker said Tuesday, part of an effort to become more competitive as earnings sag amid a worldwide steel glut.

The No. 1 blast furnace at the Pohang works, which dates to 1973, can produce up to 1.3 million tons of crude steel a year, just over 3% of Posco's total capacity.

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