SEOUL (Commodity Online): POSCO is planning to build a $448 million nickel refining unit in South Korea in a bid to increase its nickel production capacity by 80% to 54000 tonnes by 2014, the company said in a statement.
The plant is to be built at Gwangyang, southwest of Seoul. The project is aimed at improving POSCO’s global competiveness at a time when macroeconomic factors have made prices very volatile.
The venture is set up in association with Societe Miniere du Sud Pacifique SA. The construction of the plant is expected to start next month and the raw material will be procured from New Caledonia.
Nickel is primarily used in stainless steel which accounts for almost 60% of global production and is used mainly in cars and home appliances. With economic recovery in China and India, the company expects the rising disposable income will propel demand for steel.
POSCO currently has a 3 million tone annual steel production capacity and is expanding in China, Vietnam and Turkey.
