Star – South Korean steel maker Pohang Iron and Steel Company (POSCO) kicked off the construction of its new cold-rolling mill in Turkey’s northwestern province of Kocaeli. The world’s fourth largest steel producer teamed up with Turkey’s Kibar Holding and another South Korean company, Daewoo International, for the USD 350 million facility expected to create at least 1,000 jobs when it becomes operational in May 2013.
“This facility will play a significant role in reducing the current account deficit, reducing imports by USD 100 million while increasing the exports by USD 240 million” Turkey Minister of Economy Zafer Caglayan said at the groundbreaking ceremony also attended by the Minister of Science, Industry and Technology, Nihat Ergun, by the President of the Investment Support and Promotion Agency of Turkey (ISPAT), Ilker Ayci, and by executives from POSCO and Kibar Holding.
POSCO CEO Chung Joon-Yang, for his part, said that POSCO’s cold-rolling mill was the biggest South Korean investment in Turkey to date and the facility’s annual output of 200,000 metric tons will be able to meet the stainless steel demand from countries in Eastern Europe, the Middle East and Central Asia as well as Turkey and its immediate neighbors.
“The decision to invest in Turkey was taken at a high-level meeting with Turkey’s Prime Minister Recep Tayyip Erdogan in Seoul organized by ISPAT in late 2010” Joon-Yang said, extending his thanks to Prime Minister Erdogan, Minister Zafer Caglayan and ISPAT for the assistance provided during the investment process.