UANI calls on South Korea’s POSCO, Subsidiary Daewoo, to Cease Business in
NEW YORK -- January 28, 2013
On Monday, United Against Nuclear Iran (UANI) called on South Korean steel
company POSCO to end its business in Iran.
POSCO maintains a robust presence in Iran’s steel industry directly, and
through several subsidiaries. In detailed correspondence with the U.S.
Securities and Exchange Commission, POSCO has disclosed that it, as a parent
company, “produces and sells, typically through its sales subsidiaries, a wide
range of steel products to Iranian entities, some of which are entities
controlled by the Iranian government.”
POSCO subsidiary Daewoo International, a global steel and raw materials
trader, maintains a Tehran office through which it deals in various steel
In addition to its activities in Iran, POSCO maintains a presence in the U.S.
It oversees a 50/50 joint venture with US Steel Corporation, and has
subsidiaries in New Jersey and Alabama.
Since 2000, POSCO has received more than $55 million in contracts from the
U.S. Department of Defense.
In a letter to POSCO CEO, Chung Joon-Yang, UANI CEO, Ambassador Mark D.
...In detailed correspondence with the U.S. Securities and Exchange
Commission, POSCO has confirmed these extensive business ties with Iran. For
example, POSCO has disclosed that it, as the parent company, “produces and
sells, typically through its sales subsidiaries, a wide range of steel
products to Iranian entities, some of which are entities controlled by the
UANI is also concerned that Daewoo International, a global steel and raw
materials trader, maintains a Tehran office through which it deals in various
steel products...Additionally, POSCO E&C “engages in planning, design and
construction of industrial facilities in Iran.” ...Moreover, POSCO C&C
“produces and sells a limited range of steel sheet products (primarily
aluminum steel sheets) to automotive component companies in Iran,” ...In light
of the strong business links between POSCO and Iran, UANI is also concerned
that POSCO SS, the “only maker in Korea to produce stainless steel coil,” may
also have some involvement in the minting process for the manufacture of
Iranian rial coins...
...Sungjin Geotec “has entered into supply contracts with Iranian entities to
supply equipment for projects used to develop natural gas fields.” This POSCO
subsidiary has supplied equipment for developing natural gas fields in South
Pars, a project that “is led by Pars Oil and Gas Company, a subsidiary of
[the] National Iranian Oil Company.” ...POSCO has publicly acknowledged to the
SEC that its activities in Iran may be sanctionable under U.S. sanctions
In addition to its activities in Iran, POSCO has a significant presence in the
United States, through subsidiaries and global joint ventures. For example,
United Spiral Pipe LLC, a large-scale pipe-manufacturer, is a joint venture
with US Steel and SeAH, and 35% owned by POSCO. In addition, USS-POSCO
Industries is a 50/50 joint venture with US Steel Corporation to produce cold
rolled and galvanized steel products and tin-plate products for sale in the
United States. USS-POSCO Industries produced 894 tons of such products in 2010
and 874thousand tons in 2011. Another wholly owned POSCO subsidiary, POSCO
America, is located in Fort Lee, New Jersey, and supplies “steel products from
POSCO and its affiliates... to customers in the automobile, construction, and
manufacturing industries in North America.” The company also operates an
automotive steel sheet processing center in Alabama. POSCO has a U.S. listing
on the New York Stock Exchange (PKX), and its other subsidiaries, such as
Daewoo International and POSCO E&C, are also active in the U.S. and maintain
UANI has requested a reply from POSCO by February 5, 2013.
Click here to read UANI’s full letter to POSCO.
United Against Nuclear Iran
Nathan Carleton, 212-554-3296
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