POSCO is the largest steelmaker in Korea, the steel companies produce steel that is used to support the automaker industry and infrastructure development in Korea. In addition to meet the demand for steel in the country, the company also meets the demand of steel from other countries.

Global economic crisis that occurred during this activity affect the production of some industrial sectors in Korea. The decreasing production activities from the industrial sector resulted in weakening demand production of steel.

The decreasing demand impact on the production of steel decreased profits earned by POSCO. POSCO reported the company earned profits in the period April-June U.S. $ 328 million, dbandingkan in the previous year, company profits reached 1.48 trillion. Sales down 15 percent to 6.34 trillion won during the cited period, with operating income decreased 54 percent to 171 billion won.

Analyst at Woori Investment & Securities, Lee Chang-mok, to give opinions about the decline in profits POSCO,: “The market has expected weak business results for the second quarter. But POSCO is expected to see rising steel demand and its profitability will improve as well from the third quarter. ”

POSCO officials making analysis of the condition of the company profit decline, due to the global trend to reduce steel demand by builders and automakers, so that the force POSCO cut steel production.

Facing this situation POSCO has made plans to spend 5.3 trillion won to improve and expand facilities to produce steel.

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