POSCO in talks with Toyota Motor over steel supply

SEOUL, Jan. 12 (Yonhap) -- POSCO, the world's fourth-largest steelmaker, said
Monday that it is in negotiations with Toyota Motor Corp. to supply steel to the
Japanese automaker.

On Sunday, Japanese newspaper Asahi Shinbun reported that POSCO would supply
steel to Toyota's domestic plants, citing industry sources.
POSCO, South Korea's leading steelmaker, currently supplies steel to Toyota's
plants in Thailand.
The move comes as part of Toyota's efforts to cut costs after it recorded its
first-ever annual operating loss in its 71-year history this year as sales have
diminished amid a global economic slump.
POSCO, South Korea's leading steelmaker, said last month that it would cut steel
output for the first time in its 40-year history.
Shares of POSCO were trading at 378,500 won (US$278) on the Seoul bourse as of
1:20 p.m., down 4.18 percent.
The steelmaker is set to announce its fourth-quarter earnings on Thursday.
sam@yna.co.kr
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