Seoul: World's third-largest steel maker POSCO on Wednesday said it would start building a steel complex project in Orissa in October as scheduled despite encountering local opposition.
"We expect to solve the problem soon in securing land and start construction in October," POSCO's chief financial officer Lee Dong-hee said.
In 2005, POSCO signed a contract to build a $12 billion integrated steel complex in Orissa, the largest single foreign investment in India. But the project has been hampered by local protests.
Lee also expected global steel product prices to remain strong during the remainder of 2007, backed by healthy demand.
He declined to comment on a possible bid for Daewoo Shipbuilding and Marine Engineering Co. POSCO supplies 40-50 per cent of Daewoo's steel needs.
State-run Korea Development Bank and restructuring agency Kamco jointly own half the shipbuilder, a former unit of the bankrupt Daewoo Group with a market value of $5.7 billion.
Shares in POSCO rose 0.70 per cent to 429,500 won, outperforming a 0.23 per cent gain in the broader market.
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