South Korean steel processor Kyeong Nam Steel Co. will complete construction of its third plant in Gwangyang, South Jeolla Province in April, enabling the steel mill to ramp up annual capacity to 1.2 million tons.

The third plant located near its second mill is equipped with a facility processing high-strength steels that are capable of withstanding tensile strength of one gigapascal (GPa) or 100 kilograms per square millimeter.

The company expects the third facility can help boost sales by more than 30 billion won ($28 million) a year and compensate for the losses caused by its client’s bankruptcy in 2016. The new plant is also expected to bolster the company’s annual steel sheet capacity to 1.2 million tons.

Founded in 1990, Kyeong Nam Steel manufactures steel sheet products with supplies from Posco.

The company in June 2011 added its second plant commanding an area of 15,000 square meters in Gwangyang with an investment of 18 billion won. The second plant is capable of producing 400,000 tons of cold rolled steels per annum. It initiated the construction of the third plant in 2016 with an investment of 22 billion won to meet the rising demand for various steel products.

Kosdaq-listed shares of Kyeong Nam Steel closed Monday up 1.88 percent at 10,850 won from the previous session.

By Choi Seung-gyun and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]