POSCO to Halt Production at South Korean Steel Plants

SEATTLE (Scrap Monster): POSCO- the leading South Korean steelmaker announced its decision to halt operations at some of its steelmaking plants in the country. This is due to lack of storage space for finished products, following huge inventory of materials which could not be shipped, following a strike by truckers. The strike by truckers in demand for higher wages has led to disruption of cargo transport at major ports as well as industrial hubs.

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According to company spokesperson, it plans to suspend some of the operations at its Pohang steel plants effective today. The company is not certain as to how long the suspension will continue, he added. Meantime, the government held another round of meeting with the Cargo Truckers Solidarity union seeking to end the strike action which began 7^th June, 2022. The union has been demanding an extension of subsidies, which are due to expire by this year end.

The strike action by nearly 6,600 truckers on Saturday had halted trucking activities at petrochemical complexes in Ulsan, thereby slowing product deliveries for POSCO. The container traffic at Busan port has dropped by two-thirds, whereas those at Incheon port have fallen b y 80%. The container traffic at the Port of Ulsan has been halted since last Tuesday, sources said.