SEOUL, Dec 26: South Korean steel giant Posco said on Wednesday it had bought a Malaysian steelmaker as part of efforts to establish a production network elsewhere in Asia.

Posco, the world’s fourth-largest steelmaker, said it had signed a deal to acquire 60 per cent of Malaysia’s MEGS for 15.6 million dollars.

The Korean company said it would upgrade the Malaysian firm’s facilities, now capable of producing 120,000 tons of electrogalvanised coils a year, to meet growing demand in Southeast Asia.

It was firm’s first full acquisition of a foreign company. The Korean firm already has a steel processing plant in Thailand and plans to build integrated mills in India and Vietnam.

“The acquisition is part of our efforts to establish a supply value chain in Asia,” said firm’s spokeswoman Ko Min-Jin told AFP.

Posco is competing with global giants to meet rapidly growing Asian demand led by China and India.

This year’s production is estimated at 30.6 million tons. Ko said the company would boost production through “aggressive” mergers and acquisitions abroad.—AFP