POSCO mulls investment in Indonesia

SEOUL, Dec. 17 (Yonhap) -- POSCO, the world's fourth-largest steelmaker, said on
Wednesday it is considering investments in Indonesia as part of an effort to
expand its overseas presence.
On Tuesday, Reuters reported that POSCO is in talks with state-owned PT Krakatau
Steel to build a mill with a production capacity of up to 3.1 million tons in
Cilegon, West Java.
"Nothing has been decided yet and we are very cautious in pushing ahead with
overseas investments due to the global financial crisis," said a POSCO official.
In May this year, the South Korean steelmaker said it was in talks with the
Indonesian government to buy a stake in Krakatau.
Steel prices and demand have fallen sharply in the face of a global downturn,
which has forced producers to scale back output and slash jobs.
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