[Provided by Maekyung Media Group]
POSCO’s main steel mill in Pohang, southern coast, will be fully normalized by March next year from damages of Typhoon Hinnamnor in early September, according to the Korean government’s interim report on local steel supply status Monday.
POSCO is still fixing facilities at its Pohang steel mill, located in the southeastern coastal region in South Korea, which were damaged from flooding caused by the Typhoon Hinnamnor.
The steelmaker for the first time since founding had to shut down blast furnaces.
According to a joint damage study by the Ministry of Trade, Industry and Energy and steel industry, the disaster has caused estimated 2.4 trillion won ($1.8 billion) worth of loss in sales for POSCO and 250 billion won for others in the supply chain.
The joint investigation team said POSCO will be able to fully normalize production by March next year after fixes to cold rolled stainless steel factory and plating factory.
The current domestic supply level of electrical steel, wire rod and stainless steel, which are produced only at the Pohang steel mill, has been undisturbed since the government and steel industry acted quickly to transfer production orders to other local plants and expanded imports, said the industry ministry.
The joint team sees there is no immediate supply risk, given inventory level at local steel producers and fall in demand due to economic slowdown. However, it will continue to closely monitor the local steel supply and demand situation. It also plans to advise the government on requiring companies in the country’s mainstay industry sectors, such as POSCO, to set up a business continuity plan (BCP), or a system of prevention and recovery from potential business threats.
Separately, the Korean government has designated Pohang city as an industrial region for special supports, such as providing emergency funds for businesses in the region and setting up infrastructure for preventing damages from natural disasters. POSCO also has provided 170.7 billion won worth of financial supports to its suppliers and contractors to help them quickly resume normal operation.
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]