UANI calls on South Korea’s POSCO, Subsidiary Daewoo, to Cease Business in Iran

NEW YORK--()--On Monday, United Against Nuclear Iran (UANI) called on South Korean steel company POSCO to end its business in Iran.

“engages in planning, design and construction of industrial facilities 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 products.

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. Wallace, wrote:

...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 Iranian government.”...

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 legislation...

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 874 thousand 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 offices...

UANI has requested a reply from POSCO by February 5, 2013.

Click here to read UANI’s full letter to POSCO.

Contacts

United Against Nuclear Iran
Nathan Carleton, 212-554-3296
press@uani.com