Leader in the production of ferronickel, POSCO SNNC, completed the construction of the 2nd electric. Putting into operation expected to allow a 2-fold increase in annual production capacity of nickel release. As a result, the volume will increase from 30 000 tonnes to 54 000 tonnes. Representatives POSCO SNNC announced investments in the size of the second object in Gwangyang. According to them, the project was invested about 437.1 million USD. These costs need to increase the production of ferronickel, which is the main component in the production of stainless steel. Chairman of POSCO SNNC believes that the increase in production capacity has the advantage in the fight against competitors in the production of nickel.
In addition to increasing production volumes in New Caledonia POSCO SNNC plans to strengthen the South Korean national interests. To this end, POSCO management plans to be a major source of growth for stainless products. According to Paul Nautayna, President of the North Province of New Caledonia, ferronickel project issue is the common achievement. Implement it without the cooperation of the POSCO, SNNC and Nickel Mining Company it would have been impossible. The first electric furnace, the annual capacity of which reached 30 000 tons, built in 2008. The company is the brainchild of SNNC Korean POSCO and SMSP in New Caledonia. POSCO holds a 49% ownership, SMSP — 51%. The joint venture was created to provide a stable supply of nickel, as it provides 80% of stainless steel smelting.
In POSCO plans — closing of Civil Engineering of the Indian unit. The reason for the closure is the fact that the company failed to receive orders. Management staff in Gurgaon offered 50% of employees leave their place. The company also plans job cuts construction site points in Odisha. In this project it has been invested about 12 billion. USD. However, this project is at a standstill, given the protests of the local population. Also, the company does not have permission to rent the site for iron ore mining. The federal government has put forward a proposal for the auction for mineral resources. It also affected the iron ore, and limestone. POSCO will now be the Offeror for ore blocks. It should take into account the increase in costs.
Experts believe that in 2015 the company's sales will go pretty bad. Fall can be expected due to lower raw material costs and, consequently, reduce the cost of production.