South Korea's POSCO Begins Building Pipe Plant in U.S.

The plant, located in California, will annually produce 270,000 tons of pipes for petroleum.

South Korea's steel giant POSCO has broken ground to build a $129 million plant to produce pipes in California, the company said March 2. The USP -- jointly invested by POSCO, US Steel and South Korea's SeAh Steel -- will annually produce up to 270,000 tons of pipes for petroleum, it said.

POSCO, the world's fourth largest steel maker, and US Steel own a 35% stake in the new factory -- to be completed in Pittsburgh, California, by April 2009 -- it said, adding the remaining 30% goes to SeAH.

The plant will produce the American Petroleum Institute-certified steel pipes for which demand is growing in the U.S. and Canadian markets, it added.

North America accounts for more than 15% of the global demand for petroleum pipes, annually importing over a million tons of large-caliber ones, POSCO said.

POSCO and US Steel launched a joint venture, UPI, in Pittsburgh, California, in 1986 to produce cold-rolled and galvanized steel.

Copyright Agence France-Presse, 2008

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