Due to the Cargo Solidarity Strike... POSCO Pohang Steelworks Factory Operations Disrupted Starting Tomorrow

Products Unable to Ship Due to Warehouse Saturation Piled on Roads
Steel Companies in Uproar

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The nationwide general strike by the Cargo Solidarity Headquarters of the Public Transport Union under the Korean Confederation of Trade Unions (Cargo Solidarity) has continued for six days as of the 12th, causing tangible damage such as POSCO, the largest steel company in South Korea, deciding to halt operations at some of its factories.

According to POSCO on that day, POSCO Pohang Steelworks plans to suspend operations at the wire rod mill and cold rolling mill starting from the 13th.

Since the Cargo Solidarity strike began on the 7th, POSCO Pohang Steelworks has been unable to ship about 20,000 tons of products daily. The total amount of products not shipped so far is approximately 110,000 tons.

Due to a shortage of warehouse space to store the products, they have been piled up on roads and around the factory. As this has reached its limit, POSCO decided to halt operations at the wire rod mill and cold rolling mill of Pohang Steelworks. If the general strike is not resolved, disruptions are expected within days to the hot rolling and thick plate mills as well.

If the situation prolongs, blast furnace operations may also be suspended.

Hyundai Steel Pohang Plant is also facing difficulties, unable to ship 9,000 tons of products daily due to the Cargo Solidarity strike. This situation is similar for other steel companies.

Secondary processing companies of steel products, as well as cement companies located within the Pohang Steel Industrial Complex, are also experiencing disruptions in cargo transportation.

Cargo Solidarity has pitched tents at key roads in the steel industrial complex and engaged in confrontations with non-Cargo Solidarity drivers.