Saudi Arabia’s largest private sector steel manufacturer Al-Tuwairqi Holding and the world’s third-largest steel maker by market value Pohang Iron and Steel Company Limited (Posco) have signed a joint venture agreement on Saturday to invest $15 million in Tuwairqi Steel Mills.
The South Korean giant is apparently testing the waters with this investment and if all goes according to plan they will increase the investment and get managing control.
The agreement was signed by Al-Tuwairqi Holding Chairman Dr Hilal Hussain Al-Tuwairqi and Posco CEO Joon-Yang Chung at the Sindh Chief Minister House.
The government-controlled Korean firm also plans mine ore manufacturing among other value added products.
The JV agreement is the result of Chief Minister Sindh Syed Qaim Ali Shah’s visit to Korea earlier this year where he visited the headquarters of major Korean business houses which included Posco and Lotte.
Chief Minister Sindh Syed Qaim Ali Shah said that this agreement will not only create new job opportunities but also enable transfer of technology in the industrial sector.
Sindh Board of Investment Chairman Zubair Motiwala also mentioned on the occasion that a Chinese steel firm is going to invest $300 million in the country.
“The country’s geographical location offers immense opportunities to the investors and we are keen to capitalise on that,” said Posco CEO Joon-Yang Chung.
The firm is looking to invest a much larger sum in neighbouring country India but the transaction is being held up due to a land dispute.
Published in The Express Tribune, September 11th, 2011.
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