Steelmaker POSCO on Monday decided to put some workers on paid leave as it halts production lines due to ebbing business caused by the coronavirus epidemic.
It has delayed restarting a blast furnace in Gwangyang, South Jeolla Province originally planned for May following repair and maintenance work.
The steel industry is reeling as main consumers like automakers, shipbuilders and builders have been hit hard by the epidemic. Making matters worse, global iron ore prices surpassed US$100 per ton, making raw materials more expensive.
POSCO did not mention which production lines would be halted, but industry watchers believe they are cold-rolled steel and plating lines since they supply products to automakers and home appliance manufacturers.
Workers on paid leave will receive 70 percent of their monthly wages and POSCO said it is not considering laying off staff.
Earlier,Steel halted production at its electric furnace plant in Dangjin, South Chungcheong Province that makes hot-rolled steel products. said it has received almost zero orders since early this month.
Other global steelmakers have also stopped operating blast furnaces and other facilities and cut production. Nippon Steel will put workers on unpaid leave twice a month until March next year.
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