POSCO INTERNATIONAL : Sets to Establish a Modular Manufacturing Facility in Mykolaiv, Ukraine

POSCO INTERNATIONAL Sets to Establish a Modular Manufacturing Facility in Mykolaiv, Ukraine

2023.11.15

POSCO INTERNATIONAL

Sets to Establish a Modular Manufacturing Facility in Mykolaiv, Ukraine

- From the 13th to the 15th, being the first Korean private company to visit Ukraine, signed an MOU for a modular business project

- Discussed reconstruction cooperation with Ukraine's Prime Minister Denys Shmyhal and Mykolaiv Governor Vitalii Kim

- Vice Chairman Jeong Tak visited France and met with diplomats from BIE member countries to request support for the Busan Expo bid

POSCO INTERNATIONAL aims to leverage the capabilities of POSCO Group to promote a modular project as part of Ukraine's reconstruction effort.

POSCO INTERNATIONAL Vice Chairman Jeong Tak visited Ukraine from the 13th to the 15th of this month, as the first representative of a Korean private company to visit Ukraine since the breakout of Russia-Ukraine war. He signed a memorandum of understanding (MOU) with Vitalii Kim, Mykolaiv Governor, to establish 'steel modular manufacturing facilities.'

The modular construction method is selected as the initial step in Ukraine's reconstruction based on the consensus that building social infrastructure, such as housing, schools, and hospitals, is a priority in the post-war recovery process. Modular structures, which are assembled like blocks, are considered an ideal construction method for post-war reconstruction as they can reduce the construction period by up to 60%.

The business capabilities of POSCO Group will be integrated to supply these modular structures. Alongside the steel products of POSCO and the engineering technology of POSCO A&C, POSCO INTERNATIONAL's local network and negotiation capabilities will be utilized to promote the local business.

Particularly, POSCO A&C, an affiliate of POSCO Group proficient in designing, manufacturing, and constructing modular structures, has been involved in the development of the modular business in Ukraine since its inception.

The modular structure manufacturing facility will be located in the southern Ukrainian region of Mykolaiv. This region hosts sole investment asset of Korea in Ukraine, which is the POSCO INTERNATIONAL's grain terminal. Additionally, the fact that the promising local politician Mykolaiv Governor Vitalii Kim is a Korean descendant also known as 'Koryo-saram' augments the business prospects.

With this MOU, the company anticipates expanding its business scope from the agro industry to the infrastructure sector in Ukraine.

The grain terminal, which commenced operation in 2019, played a crucial role in Ukraine's business for three years before the war, exporting approximately 2.5 million tons of Ukrainian grain to Asia, the Middle East, Africa, and other countries. Although its operation was temporarily suspended during the war, the facility remains undamaged and continues to function partially with local and global employees.

During his visit, Jeong Tak also met with Vicor Ivanchyk, CEO of the local agricultural company Astarta, to discuss Ukrainian grain exports that have been impeded by the naval blockade. They further discussed how to utilize the grain terminal and expand the value chain in the grain sector post-war.

Before that, Jeong Tak met also met with Prime Minister Denys Shmyhal and other key government officials in Kiev, which included Rostyslav Shurma, Deputy Head of the Office of the President of Ukraine (for Economic and Industrial Affairs), and Yurii Vaskov, Deputy Minister for Communities, Territories and Infrastructure Development of Ukraine, to discuss a wide range of reconstruction initiatives.

At the meeting, Jeong Tak expressed POSCO Group's commitment to participate in the reconstruction of Ukraine with all its capabilities, including steel, energy, construction, and IT. He requested the central government's support for the newly launched modular project.

In response, Prime Minister Shmyhal expressed high expectations for the reconstruction project proposed by POSCO INTERNATIONAL, and requested continued interest and investment to expedite the recovery of the Ukrainian economy.

Meanwhile, following his visit to Ukraine, Jeong Tak will continue his work as a member of the Busan Expo Executive Committee by visiting France from the 16th to the 17th. Prior to the Expo host selection vote set for the 28th of this month, he is scheduled to meet ambassadors from two West African countries, Guinea-Bissau and Cape Verde, both members of the Bureau International des Expositions (BIE), and also with representatives from Greece and Mexico to garner support for the 2030 Busan Expo bid.

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