South Korea's POSCO (005490.KS) said on Tuesday fire at its new steel plant in Pohang was under control but details on the extent of damage were not immediately available.

Yonhap News said coal-processing facilities at POSCO's newest steel plant in its home town of Pohang, in the southeast, caught fire on Tuesday but there were no reported casualties.

The plant, called FINEX, has annual production capacity of 1.5 million tonnes of crude steel and uses POSCO's latest technology.

FINEX, at the heart of POSCO's efforts to reduce production costs, uses cheaper raw materials such as iron ore fines and non-coking coal to make steel and produces fewer greenhouse gas emissions compared to traditional blast furnaces.

The plant's capacity is relatively small against its total capacity of around 31 million tonnes.

Shares in POSCO closed down 1.6 percent at 377,000 won before the news, lagging a 0.95 percent rise in the broader market .KS11.

(Reporting by Miyoung Kim; Editing by Nick Macfie)

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