POSCO plans to make first production cut in 12 years
2020-05-13 11:59:48 [Print]
POSCO has decided to make the first cut in production in 12 years since 2008
The main culprit behind this cut is a slowdown in demand from the downstream industry, triggered by the COVID-19 crisis. In particular, a decline in automobile production had a big impact on the cut.
. POSCO plans to reduce production capacity of 980,000 tons in May only by lowering the utilization rate of its production lines such as cold- and hot-rolled steel sheets at Pohang and Gwangyang Works, said sources in the steel industry on May 10 . Specifically, POSCO will cut 180,000 tons at Pohang Works and 800,000 tons at Gwangyang Works . Given that the crude steel production of Pohang and Gwangyang Works in Q2 of 2019 hit 8 . 85 million tons, POSCO will decrease its average monthly production by more than 30%.The main culprit behind this cut is a slowdown in demand from the downstream industry, triggered by the COVID-19 crisis. In particular, a decline in automobile production had a big impact on the cut.