SEOUL, Sept. 16 (Korea Bizwire) — South Korean steelmaker POSCO said Friday it will complete repairs of manufacturing facilities damaged by a recent typhoon within three months and plan to fully normalize operations by December.
Earlier this month, Typhoon Hinnamnor hit the country’s southeastern parts and severely flooded POSCO’s facilities in Pohang, about 270 kilometers southeast of Seoul.
As a result, the company was forced to halt blast furnaces at its main steel mill in the southeastern port city for the first time in its half-century history.
The steelmaker reported 2.4 trillion won (US$1.7 billion) in lost revenue, some 2.7 percent of the steelmaker’s annual revenue, with 170 tons of lost production.
POSCO said the production of cold-rolled steel sheet and stainless steel was hardest hit by the powerful typhoon that killed more than 10 people and left severe flooding and damage in its wake.
Earlier this week, the steelmaker restarted all of its three typhoon-hit blast furnaces in phases in Pohang, after a weeklong shutdown. But some rolling and other facilities remain closed.
POSCO’s Pohang steelworks generated 18.49 trillion won in sales last year, accounting for some 24 percent of the group’s total.
The company said it will increase production at five blast furnaces in the southwestern city of Gwangyang, about 300 kilometers south of Seoul, as none of them were affected by the typhoon.
Also it is considering importing steel products from its plants in Indonesia, India, China and Thailand.
The current production issues are unlikely to lead to a supply crunch and will have limited impact on customers, POSCO said, as there is inventory sufficient to last 2-3 months.