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Dongkuk Steel aims for high-end steel maker: CEO |
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administrator |
DATE |
2014-07-07 16:49:20 |
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DANGJIN, South Korea, July 7 (Yonhap) -- Dongkuk Steel Mill Co., one of South Korea's leading steelmakers, aims to become a global supplier of high-end steel products as part of efforts to brush off tough competition with Chinese and Japanese rivals, the company's CEO said Monday.
In a meeting with reporters to mark the 60th anniversary of the company's founding, Nam Yun-young said the company will overcome challenges posed by Chinese and Japanese rivals by producing high-value added and specialized steel products at its steel mill being built in Ceara's Pecem Industrial Complex in Brazil.
The executive said its Brazilian steel mill construction, of which 60 percent is completed, should be done in the third quarter of 2015.
The groundbreaking ceremony for the plant was held in 2011, with main construction starting in the following year.
The blast furnace mill is being built by a consortium made up of Dongkuk, POSCO, one of the top steel producers in the world, and Vale, the world's largest supplier of iron ore in the world. Dongkuk holds a 30 percent stake, with POSCO holding 20 percent and Vale owning 50 percent.
Nam said the company's stake in the Brazil plant will allow it to import steel slabs at a cheaper price than the international market average so it can make steel plates for ships and marine plants.
"Dillinger Hutte and SSAB Swedish Steel have been able to overcome recent difficulties in the steel industry by focusing on high-quality products," Nam said, hinting at the South Korean steelmaker in benchmarking these companies.
Dongkuk will be entitled to get 1.6 million tons of steel slabs from the Brazilian operation annually. The plant in Brazil should be able to churn out some 3 million tons of slab once production begins in earnest in the first half of 2016.
Despite being one of the top mills in the country trailing only POSCO and Hyundai Steel, the company does not have its own blast furnaces that can directly use iron ore to make steel products.
The CEO then said while there have been concerns of the company facing a liquidity crunch, he claimed there is no real risk.
"We have some 1 trillion won (US$998 million) in easily accessible liquidity and even secured operating funds for the rest of the year, so there is no risk of not being unable to pay back debt," he said.
yonngong@yna.co.kr
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