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POSCO announces new investments in Mexico and Vietnam

POSCO to have 50 overseas subsidiaries across globe
Consolidates leadership with overseas expansion
Impressive Greenfield projects with established experience in many countries

Bhubaneshwar, Friday, October 23, 2006: POSCO, the mother company of POSCO-India and the third largest steel manufacturer in the world, today announced new investments in Mexico and Vietnam for future growth and global competitiveness. The decision was taken at the Company Board of Director’s meeting held in Seoul today.

POSCO plans to build 700, 000 TPA Cold Rolling Plant near Hochiminh in Vietnam with an investment of USD 361 Million. The construction is expected to start in Oct 2007 and completion is targeted towards end of 2009. The investment in Mexico will be to the tune of USD 262 Million for the proposed construction of a 400, 000 TPA galvanizing Cold Rolling Plant to be constructed between Oct 2007 and June 2009.

With these new investments in Vietnam and Mexico, POSCO will have 50 overseas subsidiaries all around the globe. China had seen the biggest investment, at USD 2.4 Billion with 18 subsidiaries including 6 steel production operations. However, the biggest investment for a single project so far is POSCO’s Indian Greenfield Project with 12MPTA capacity integrated steel plant in Orissa making it the hub for company’s growth.

POSCO’s overseas investment covers steel productions, processing operations, mining operations, trade and others. The company has established businesses in more than 14 countries including India, China, Vietnam, Brazil, USA, Australia, Japan, Canada, South Africa, UK, Thailand, Myanmar, etc.

POSCO has always been an exemplary entrepreneur in setting up new operations worldwide both on its own and joint ventures with other companies. Rather than following the global trend of mergers and acquisitions, the company has expanded its competitiveness by venturing into Greenfield operations.

POSCO has been selected as the most competitive steelmaker in the world by renowned publications in terms of technology, production efficiency and sustainable management. One of the company’s core strength is its financial stability; the balance sheet points out a high equity ratio of 82 per cent. The company’s debt to equity ratio is at only 22 per cent.

About POSCO

Founded in 1968 and headquartered in the southeastern port city of Pohang in Korea, POSCO operates two of the world’s premier steel works--the Pohang and Gwangyang works. The Pohang works produces crude steel of 13 million tonnes and specializes in small-lot production of a broad range of products, including hot rolled and cold rolled sheet, plate, wire rod, electrical steel, and stainless steel. The Gwangyang works focuses on mass-production of limited high-demand products such as hot and cold rolled sheet and produces crude steel of 17 million tonnes. POSCO’s products are shipped to over 60 countries around the globe, satisfying some of the world’s most quality-sensitive customers.