POSCO to invest in Pakistan’s energy sector
South Korea’s largest steel mill by market value says it will invest in Pakistan’s energy sector, including solar energy, hydropower and other renewable sources.
POSCO revealed this plan during a meeting between officers of the Pakistan Business Association North Korea headed by Secretary General Israr Khan and POSCO executives led by General Manager Lee Wol Ho and Senior Vice President In Ho Kim.
Khan told the POSCO officials that Pakistan is ideal for investments and the government will support foreign investors.
POSCO’s planned diversification into the energy business comes after it reported a 66% drop in second-quarter profit despite aggressive cost cutting. The company, however, expects second-half profitability to improve from the first half.
POSCO has a plan in place to withstand the worldwide economic slowdown, according to its senior executives. This involves continuing to sell off some unnecessary assets to streamline its balance sheet. POSCO plans to sell more than 10 affiliates that have either been restructured or are unprofitable.