Seoul, South Korea — ESI-AFRICA.COM — 06 December 2010 – In an effort to move into the renewable energy sector, South Korean manufacturing giant POSCO “’ the world’s third-largest steelmaker “’says it has acquired Japanese power generation company Xenesys Incorporated for US$7.4 million (R52 million), its first acquisition of a non-steel firm overseas.
A company statement issued here said the steel giant was trying to expand into non-steel sectors, especially renewable energy, to secure growth engines.
POSCO and its Japanese unit, POSCO Japan, signed a deal to purchase a combined 51% share in the unlisted Japanese firm, which specialises in converting waste heat or seawater into power, the company said.
“Xenesys, albeit small, has core technology, and will raise synergies by helping our company and its affiliates pursue eco-friendly, green growth,” POSCO said in its statement.
In December last year the company said that it planned to invest US$6.2 billion (R43 billion) in environmental businesses by 2018, aiming to reach US$9 billion (R63 billion) in annual sales.
The sectors targeted for investment included synthetic natural gas, smart nuclear reactors, wind power generation, fuel cells and smart grid technology, it added. The steelmaker also said in a regulatory filing in October that it was considering purchasing Norwegian solar silicon product maker Elkem AS.