EDB helps SKorean steelmaker nail deal

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ISLAMABAD: Engineering Development Board (EDB) has successfully facilitated a South Korean manufacturer of Iron and Steel products, Pohang Iron and Steel Company (POSCO) to invest in Pakistan.

The company has signed joint venture agreement with Tuwairqi Steel Mill (TSML) for investing US$15million in the DRI project of TSML by subscribing15.3% newly issued common shares, a statement of the EDB issued here.

According to statement, subsequent to commercial operation of the DRI project, POSCO is keen on the forward and backward integration of the project by investing in the steel melting and mining sectors by increasing its shareholding in TSML up to the threshold level of 50%.

The move will eventually result in huge foreign equity inflow to build a state-of-the art integrated in the country along with creation of tremendous employment opportunities. It may be recalled that four-member delegation of the POSCO visited Pakistan in March 2011 to explore the possibility of initiating the steel manufacturing business in Pakistan.

The delegation was given detailed presentations about the current status of local steel industry and future growth prospects by Engineering Development Board (EDB).

They showed their satisfaction at the growth potential of steel manufacturing industry in Pakistan. Later a visit of the delegation to Tuwairqi Steel Mill was also arranged by EDB.

The CEO EDB held a number of meetings with the Korean Ambassador in Pakistan to woo him for investment in Pakistan. (APP)