POSCO Group, South Korea's top steelmaker, said Wednesday it is planning to invest more than 4 trillion won (US$3.04 billion) over the next decade to build new growth engine facilities at its plant in a state industrial park on the southwest coast.
Seoul is pushing to drastically lift restrictions on state-run industrial complexes in an effort to jump-start corporate investments in hi-tech and new growth industries.
To that end, the government plans to revise the enforcement decree of a related law by June to allow state industrial parks to house other sectors than those that meet their original purposes.
POSCO said at least 4.4 trillion won will be invested to build new growth engine facilities on a huge plot of reclaimed land close to its Gwangyang plant over the next 10 years, should the decree be revised as planned.
POSCO said it hopes to break into new growth sectors such as rechargeable battery materials, hydrogen production and nickel sulfate refining.
The reclaimed lot of land is adjacent to POSCO's steel factory at the Gwangyang industrial complex. POSCO has been carrying out the reclamation project since 1989. In January, POSCO broke ground for a second liquefied natural gas terminal at the reclaimed site.
"POSCO's planned investment will likely create synergy between its existing steel facilities and state-supported cutting-edge industries," the company said in a statement.
The investment project is also estimated to create 9,000 jobs and generate a production inducement effect of 3.6 trillion won per year, POSCO added.
Later in the day, Prime Minister Han Duck-soo visited POSCO's Gwangyang plant, unveiling the government's deregulation plan.
"The deregulation is aimed at nurturing advanced industries in a preemptive way, as well as promoting balanced regional growth," Han said. "The government will focus on helping large private investments pump-prime the growth of regional economies."
Source: Yonhap News Agency