Posco will participate in Iran steel project worth $1.6B

Posco, the nation’s largest steelmaker, will participate in a steel mill construction project worth $1.6 billion in Iran, along with an Iranian steel company called PKP, according to the Ministry of Trade, Industry and Energy and Posco on Tuesday.

Posco and PKP reached a memorandum of understanding last September, and are scheduled to sign a memorandum of agreement in March, aiming to break ground in March 2017.

The mill is planned to be capable of an annual production of 1.6 million tons steel, using Posco’s flagship FINEX and CEM technologies. Posco will hold an 8 percent stake.

In addition to the Posco project, the Trade Ministry plans to visit Iran next month with local businesses, including SK Energy, Hyundai Oilbank and Korea National Oil Corporation, seeking more economic cooperation with the country.