POSCO gets approval for new plant

Stalled works on POSCO’s new plant at Pohang Steelworks are set to resume, with the Prime Minister’s Office deciding to ease regulations that had brought the works to a halt in July.

The Pohang municipal government had approved plans for the plant without consulting military bases in the area about height restrictions on buildings in the area due to military flights.

The steelmaker was informed of the restrictions in August 2009, after the works had begun. The company, however, continued to build parts of the plant not subjected to the height restrictions and the plant is now 93 percent complete.

So far the steelmaker has injected 1.3 trillion won ($1.2 billion) out of the 1.4 trillion won investment planned for the plant.

Concerned parties have now decided to allow the works to continue by reducing the height of the plant by 1.9 meters, and extending the runway at Pohang airport by 378 meters.

All costs arising from the changes will be footed by the steelmaker, which according to POSCO have yet to be calculated.

Pohang’s municipal government will be responsible for carrying out all related administrative procedures, the Prime Minister’s Office said.

By Choi He-suk (cheesuk@heraldcorp.com)