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POSCO ICT Shares Rise on News of LED Joint Venture in China

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Thursday, September 26th, 2013
SEOUL, KOREA- The share price of POSCO ICT is showing strength on news that it would establish an LED lighting business in China. At 9:12 am on September 25, the company's shares were trading at 10,050 won, up 3.72 percent (360 won) from the previous day. On the same day, HMC Securities maintained its investment opinion on POSCO ICT at "buy" and a target price of 13,000 won.
 
HMC Securities analyst Park Han-woo said, "POSCO Group company POSCO ICT and Tangshan Iron & Steel, an affiliate of the world's third largest steel maker Hebei Iron and Steel Group, are joining hands for the LED business in China."
 
The 50:50 joint venture, to be established by the year's end, will have paid-in capital of 50 million yuan (US$8.17 million). The name of the new company will be Tangshan-POSCO LED Ltd. According to McKinsey & Co. and other market research firms, the current Chinese LED lighting market is estimated at $4.1 billion and will grow to $9.8 billion by 2015.

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