Krakatau Posco lost 600,000 tonnes of steel output on furnace accident
South Korean steelmaker Posco said its 3-million tpy joint-venture in Indonesia, PT Krakatau Posco, lost approximately 600,000 tonnes of steel due to a blast furnace accident in January.
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Regular operation was delayed for “about two months” due to the incident, Posco new ceo Kwon Oh-joon said at a recent event in South Korea, according to the company’s official blog on Monday March 24.
“It will be difficult to achieve surplus due to the loss of approximately [600,000 tonnes] of production caused by the accident, but we will do our best to make [gains] next year,” Kwon said when asked about Posco’s overseas operations.
Posco had already said in January, after the leakage incident happened at the slab and plate mill in West Java, that it expected lower financial results this year.
Kwon also said he expects “acceleration in administrative implementation” for the company’s integrated steel project in India, which received environmental clearance in January after waiting for almost eight years.
“Because India tends to have many decentralised policies, we have had to negotiate with many different bodies regarding business implementation and also had communication difficulties due to the cultural differences,” Kwon explained.
However, a visit by South Korean President Park Geun-hye to the country in January made a lot of headway in terms of obtaining mineral rights and adjustment of land, he pointed out.
Finally, Kwon also replied to a question about the competition in the South Korean market, where the company’s former hegemony has been gradually diminished over the past few years by the emergence of Hyundai Steel.
Part of the Hyundai Motor Group, Hyundai Steel has been increasing both its crude steel and finished steel capacity in order to supply its parent company, as well as other carmakers, shipbuilders and other sectors.
“While there is no longer a monopoly, the increase in competition has helped the Korean steel business to become more advanced,” Kwon said.
“Cooperation and healthy domestic competition will help Korean companies to become more globally competitive,” he added.