The Hindu Business Line : POSCO India MD appointed to board

Even as its proposed 12-million-tonne-per-annum capacity steel mill is facing stiff opposition from the people in Orissa's Jagatsinghpur district, Korean steel maker POSCO on Friday said the project was a significant part of its strategy to enhance its global competitiveness and appointed the POSCO India Managing Director as a Standing Director in the POSCO Board.

"This is the first time in the 38-year history of POSCO that the head of an overseas subsidiary has been appointed a board member. This move is reflective of the significance of the POSCO India project in the ambitious growth plans the company has chalked out to establish global leadership," the company said in a statement released here.

The decision to appoint the POSCO India Managing Director, Mr Soung-Sik Cho, as Standing Director in the Posco Board was taken at the company's shareholder meeting in Seoul.

POSCO India's steel plant project is the largest foreign direct investment in India and the investment proposed is to the tune of Rs 51,000 crore.

"India will see significant benefits from the POSCO project such as creation of approximately 48,000 jobs in the region and 467,000 man-years of employment during the construction phase. A total of $278.6 billion is the projected economic effect of the project, considering taxes and royalty incomes for the Central Government, as well as the Government of Orissa," the company claimed.

The company aims for a 35-million-tonne production base in Korea by stepping up domestic investments; usage of innovative technology; emphasis on value-added strategic products; and improved cost efficiencies aided this performance.

In 2005, POSCO had registered crude steel production of 30.54 million tonnes with sales of Rs 92,800 crore and operating profits of Rs 25,300 crore.

The POSCO Chairman, Mr Ku-Taek Lee, said they would do their best to be the leading centre of the steel industry, making structural changes in the global steel industry by doubling the company's profitability and competitiveness, and creating more value, among other initiatives. "Progress in our investments in India and China will form the bedrock for our global growth."

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