POSCO dismantles and sells FINEX facility

The world's largest steelmaker plans to export its FINEX steel mill upon completion of its operation, following the full operation of its FINEX plant # 3.

With this move, POSCO plans to intensify its financial restructuring by raising profits while at the same time adjusting domestic steel production as the industry suffers from oversaturation.

A senior POSCO official said: "The company is shutting down FINEX and selling its properties. We are looking for overseas buyers who seem to be more interested than their local counterparts." The company looks forward to swift government approval for overseas sales. FINEX technology is regarded as the nation's core technology and is regulated by the government, so the sale of related facilities overseas needs its approval.

The steel giant has been investing and developing the world's first FINEX technology for 10 years since 1992, together with Siemens VAI, and completed the construction of the first FINEX plant, capable of producing about 600 thousand tons of pig iron in 2003. The company started its second plant with an annual production capacity of 1.5 million tonnes in 2007 and recently launched its third plant with an annual production capacity of 2 million tonnes.

Plant # 1 is currently lagging far behind the two new plants in terms of capacity and economic viability. The company hopes to receive not too large funds from the sale of FINEX plant No. about $ 30-40 million. It is expected that the technology may interest foreign companies, but its export requires government approval.