[East Asia Summit] POSCO, Doosan Knocking on Global M&A Market

Heavy industries in Korea are swooping upon the markets outside of the peninsula with the leadership of POSCO and Doosan Group.
 
Both strive to make the dream come true to be the world’s best company in steel industry and infrastructure business by expanding their business overseas through merger and acquisition.

South Korean steelmaker POSCO said September that it had agreed to set up a joint venture with Kazakhstan's UKTMP to produce titanium slab from late 2010.

The two firms signed a memorandum of understanding (MOU) to set up a plant in Ust-Kamenogorsk, eastern Kazakhstan by the first half of 2010, each with a 50 percent stake, to develop the metal used in shipbuilding, aerospace and nuclear power, POSCO said in a statement.

POSCO CEO Chung Joon-yang said the firm planned to further cooperate with Kazakhstan on the development of infrastructure and the country's "abundant" resources.

POSCO plans will make titanium plates from the slabs at its domestic plants to sell in South Korea, China and European markets.

Doosan Heavy industries also takes lead in the global projects.

Doosan Heavy Industries and Construction signed a deal to acquire Czech turbine company Skoda Power after making a variety of successes in East Asia and India.

The deal is the latest in a series of takeovers by Doosan, which has purchased Bobcat of the US, the world's top compact construction equipment firm.

Doosan Heavy president Park Ji-Won said that the acquisition of Bobcat and Skoda Power would help his company make an aggressive advance into European and US markets.

As a result, the company ranks fourth on the 2009 list of the World's top 40 companies compiled for BusinessWeek by management consulting firm A.T. Kearney. The survey was conducted by AT Kearney, a global management consulting agency, entrusted by BusinessWeek. 

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