Construction Begins on Auto Steel

Wholly-owned Korean steel manufacturer Posco Suzhou has started construction
on a 200,000 ton per year automotive steel sheet processing facility in Kunshan, between
Shanghai and Suzhou. The plant will involve an investment of US$20 million and will be the
largest facility of its kind in China. Completion is scheduled for April 2005. Posco sold
150,000 tons of automotive steel sheet to China last year and expects that figure to reach
340,000 tons this year.