Dow Jones: Posco, GE Sign Pact To Cooperate In Energy Development, Power Plant Business

Dow Jones MetalSource Steel
Staff Reporters

SEOUL (Dow Jones)--Posco (005490.SE), the world's third-largest steelmaker by output, said Thursday that it has signed an initial agreement with General Electric Co. (GE) to cooperate in energy development overseas and power plant business.
Under the pact, Posco expects to build and operate power plants in a joint project with GE, while the U.S. company will supply core equipment such as turbines and boilers for the plants, it said.

Posco, which is struggling with weak demand and oversupply, acquired Daewoo International Corp. (047050.SE) in late 2010 to strengthen its presence in resources-development and power-plant markets, the company said in a statement.
The South Korean steelmaker also expects to engage in joint efforts with GE to develop high-end steel products used in oil-and-gas-drilling offshore facilities, said the statement.

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