Posco reports $1.5 billion of lost sales as a result of typhoon

The first electrical steel produced after a part of Posco's steel plant in Pohang, North Gyeongsang resumed operation is shown on Friday. [POSCO]

Posco will lose an estimated 2.04 trillion won ($1.5 billion) of sales as a result of typhoon damage at hot rolling facilities in Pohang, North Gyeongsang, the steelmaker said Friday.

The figure is equal to 2.7 percent of the company's consolidated sales last year.

The estimated loss grew as the resumption of stainless cold rolling mill operations was delayed due to the facility being located close to the Nangcheon stream in Pohang.

It is anticipated that around 1.7 million tons of steel production will be affected. The company is planning to reduce the sale of steel products from Pohang to 970,000 tons and make up for the difference by fully operating its Gwangyang steel plant and utilizing inventory.

The company completed draining the rolling facilities and expanded power distribution on Friday.

One of its electrical steel plants resumed operation starting Thursday.

The Pohang plant produced 16.9 million tons of steel products annually as of 2021, including 2.2 million tons of hot-rolled steel and 3.4 million tons of thick plate. The products are used by a wide range of companies, including electronics makers, automakers and shipbuilders.

Sales from the Pohang plant was 24.2 percent of the company's total sales last year. Posco is a fully-owned subsidiary of Posco Holdings.

Posco aims to resume operations at its steel plant in Pohang within three months.

BY CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]