MT Arcelor Mittal New

 

Korean steel producer, POSCO (PKX) recently announced a positive end to its efforts started in 2010 to develop a high quality, safer and lighter steel body for electric vehicles.

Developed for using high quality steel and complex technologies, the new steel body named PBC-EV (POSCO Body Concept-Electric Vehicle) is 25% lighter than existing steel bodies and abide by all international collision safety regulations. Moreover, test results show that PBC-EV is environment friendly and that the newly developed electric vehicle steel body emits 50% less greenhouse gases.

With the increased usage of electric vehicles around the world, we believe PBC-EV will be an added advantage for POSCO to tap the growing demand for such vehicles.

Also, of late, POSCO conducted a ground breaking ceremony for POSCO Green Building; construction is expected to be completed by April 2013. One of its kinds, the building will have the capacity of reducing approximately 100 tons of carbon dioxide annually compared with general buildings.

Recently reported financial year 2011 results depict that POSCO fared well on the back of solid finished product sales, especially to shipbuilders and automakers. Revenue for the year increased roughly 44% year over year. Crude steel production increased 11% while higher input costs dragged down the margins. The company also projected a 3% year-over-year increase in global steel demand and roughly a 1% increase in domestic demand in 2012. Stainless steel demand growth is expected to be around 3.4%.

POSCO is the world’s third largest steel producer on the basis of output. The company grows well from its wide regional diversifications, higher proportion of value-added products in its product mix and new facility additions over the longer term. However, extensive competition faced from industry players like Arcelor Mittal (MT) and Nippon Steel Corp. (NISTY.PK) acts as an impediment to growth.

 
ARCELOR MITTAL (MT): Free Stock Analysis Report
 
POSCO-ADR (PKX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research