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The Indian government has removed another stumbling block to Korean steel maker POSCO¡¯s plan to build an integrated steel mill there. New Delhi recently lifted a ban on the development of a forest area, allowing POSCO to purchase the state-owned land which accounts for 89 percent of the intended plant site. The wait for the decision had suspended POSCO¡¯s Indian project in limbo.
Announcing the company¡¯s third-quarter business results at Woori Investment & Securities in Seoul, POSCO vice president Lee Dong-hee said Tuesday the Indian government would imminently announce the removal of the ban and POSCO will purchase the land this year. The steel mill is to cover 16.2 million sq. m., 14.43 million sq. m. of which are owned by the Indian state.
POSCO signed a memorandum of understanding with Orissa state to build a mill there as long ago as June 2005. But the project was derailed when the central government postponed lifting a ban on the development of forest area at the site and some local residents fiercely opposed the construction plan.
Meanwhile, POSCO said that it earned W5.25 trillion (US$1=W917) in sales and W1.073 trillion in operating profit in the third quarter. Operating profit was down W174 billion from the previous quarter but has been above W1 trillion for five straight quarters since the third quarter last year. The operating profit rate inched down from 21.5 percent to 20.4 percent.
Lee said overall operating profit decreased due to the company¡¯s poor performance in the stainless steel field. But it has nonetheless posted an operating profit topping W1 trillion for five consecutive quarters thanks to a bullish carbon steel market.
POSCO expects to earn a total of W21.8 trillion in sales and W4.5 trillion in operating profit this year, up W1.8 trillion and W600 billion year-on-year respectively.
(englishnews@chosun.com )
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