POSCO to cut steel output by 570,000 tons for 1st time

SEOUL, Dec. 18 (Yonhap) -- POSCO Co., South Korea's largest steelmaker, said Thursday it will cut crude steel production by a total of 570,000 tons by the end of next month, citing an abrupt decline in domestic steel demand as a result of the global economic slump.

POSCO said the move, its first-ever production cut, was aimed at dealing with a
sharp fall in steel demand from local automakers and home-appliance
manufacturers.
POSCO plans to cut output by 200,000 tons this month and another 370,000 tons
next month, the company said in a statement.
POSCO, the world's fourth-largest steelmaker, joined global rivals such as
ArcelorMittal and Nippon Steel Corp., the world's two largest steelmakers, in
reducing output amid the deepening global slowdown.
"We decided to cut output as many of our clients have been in a output-cutting
mode since November and the recession in local demand is deeper than expected,"
POSCO said in a statement.
South Korean automakers, led by Hyundai Motor Co. and its affiliate Kia Motors
Corp., have been cutting output by slashing daily work hours and suspending
production lines at weekends.
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