Dongbu Steel’s furnace sale to be completed within the year

[THE INVESTOR]  Dongbu Steel’s creditors plan to complete the sale of the company’s electric arc furnace within the year, with two Iranian steelmakers showing interest in the facility.

According to reports citing unnamed South Korean finance industry sources, two Iranian steelmakers submitted letters of intent earlier this month. The final biddings will take place at the end of October, and the creditors hope to select the preferred bidder in November, to seal the deal within the year. 

The electric arc furnace is estimated to fetch about 200 billion won (US$182.37 million), which will go toward repaying Dongbu Steel’s debts.

Weighed down by the steel industry slowdown, Dongbu Steel began the workout process in October 2015.

By Choi He-suk (cheesuk@heraldcorp.com)