POSCO, the world's fourth largest steelmaker, announced that it would invest 6 trillion won (US$4.3 billion) in the domestic market in 2009 and create a 10 billion-won (US$7.2 million) R&D fund, the Korea Herald reported today.

The amount of investment, which will be used to promote growth of POSCO's 13 subsidiaries, is up from 3.4 trillion won (US$2.4 billion) this year.

"By collaborating with our subsidiary companies, we can turn the current crisis into a new business opportunity," POSCO CEO LeeKu-taek said.

Lee added that the plan will provide the company with a long-term growth engine while its competitors in China, India and Europe cut production and investment.

In the meantime, POSCO is also expanding capacity for products including heavy plates for ships.

POSCO's production of heavy steel plates is expected to increase 38 percent to 7.3 million tons by 2011 with the new plant expected to be completed in July 2010.