POSCO may boost steel plate output by half: Paper

Seoul, June 16: South Korean steel maker POSCO Co Ltd is considering boosting production of steel plate for shipbuilding by around a half to meet strong demand, Maeil Business Newspaper reported on today.

''We are considering allocating capacity increase from our Kwangyang mill to steel plate production,'' the newspaper quoted a a POSCO source as saying.

POSCO expects to see the mill's capacity grow by 1.5 million to 2 million tonnes a year after planned repair and maintenance between 2007-2008, the newspaper said. POSCO produced about 3.6 million tonnes of steel plate last year, it added.

The move comes as local shipbuilders struggle to secure steel for ships amid booming orders. South Korea is home to top shipbuilders including the world's biggest, Hyundai Heavy Industries Co Ltd .

POSCO officials could not be reached for immediate comment.

Shares in POSCO have soared 54 percent so far this year, lifted by expectations of strong earnings and consolidation in the sector.

Reuters>