POSCO to hike stainless steel production in Vietnam

SEOUL, July 21 (Reuters) - South Korea's POSCO said on Wednesday its Vietnamese unit would expand cold-rolled stainless steel production capacity through 2014 to enhance its business in Southeast Asian markets.

POSCO, the world's No. 3 steelmaker, would beef up capacity to 235,000 tonnes in 2013 and to 285,000 tonnes in 2014 from the current 85,000 tonnes, the firm said in a statement.

POSCO in March said it would raise its Vietnamese stainless steel plant capacity by 200,000 tonnes per year in the near future as part of its efforts to secure a stable customer base for the business in the region.

The firm also has been negotiating to take over Thainox Stainless Pcl, Southeast Asia's largest stainess steel producer, but the talks have been stalled due to political instability in Thailand.

(Reporting by Cho Mee-young; Editing by Ken Wills)

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