Korean company to invest US $ 15 mln in Pakistan

The Engineering Development Board has persquarry industry in indiauaded a South Korean manufacturer of Iron and Steel products, Pohang Iron and Steel Company POSCO to invest in Pakistan.The company has signed joint venture agreement with Tuwairqi Steel Mill (TSML) for investing US$15 million in the DRI project of TSML by subscribing 15.3 per cent newly issued common shares, said a statement issued here on Monday. Subsequent to commercial operation of the DRI project, POSCO is keen on the forward and backward integration of the project by investing in the steel melting and mining sectors by increasing its shareholding in TSML upto the threshold level of 50 per cent.

The move will eventually result n huge foreign equity inflow to build a state-of-the art integrated in the country along with creation of tremendous employment opportunities. It may be recalled that four member delegation of the POSCO visited Pakistan in March 2011 to explore the possibility of initiating the steel manufacturing business in Pakistan. The delegation was given detailed presentations about the current status of local steel industry and future growth prospects by Engineering Development Board (EDB). They showed their satisfaction at the growth potential of steel manufacturing industry in Pakistan. Later a visit of the delegation to...