POSCO to Hike Stainless Steel Production in Vietnam

SEOUL, July 21 -- South Korea's POSCO (005490.KS: Quote) said on Wednesday its Vietnamese unit would expand cold-rolled stainless steel production capacity through 2014 to enhance its business in Southeast Asian markets.

POSCO, the world's No. 3 steelmaker, would beef up capacity to 235,000 tonnes in 2013 and to 285,000 tonnes in 2014 from the current 85,000 tonnes, the firm said in a statement.

POSCO in March said it would raise its Vietnamese stainless steel plant capacity by 200,000 tonnes per year in the near future as part of its efforts to secure a stable customer base for the business in the region.

The firm also has been negotiating to take over Thainox Stainless Pcl (INOX.BK: Quote), Southeast Asia's largest stainess steel producer, but the talks have been stalled due to political instability in Thailand.