POSCO considers selling only steel plant in China
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Update time : 2024-11-12 15:15:02
According to the report, POSCO Group is thinking of selling POSCO Zhangjiagang Stainless Steel (PZSS) in China, the stainless steel plant was set up in 1997. This was from the Chairman’s plan to restructure 125 low-profit businesses and non-core assets.
The plant was a joint venture located in Jiangsu Province, China. It is held by Posco Holdings and Posco China for 82.5% stake, and the rest is held by Shagang Group, the second biggest steel company in China. It produces 1.1 million tons of crude steel annually.
According to one Posco Holdings representative, the company will consider many options, including a sale due to the continuous losses. It recorded an operating loss of US$130 million, the biggest loss among 38 overseas subsidiaries of Posco.
The joint venture’s profit went down due to an oversupply of stainless steel in China. The recent stainless steel production capacity from China’s 43 stainless steelmakers is 28.21 million, which is more than 24.17 tons of products consumed.
Posco is working on restructuring low-profit and non-core assets in the group. It may sell or re-arrange 125 businesses and assets by 2030. It has raised 652.4 billion won in cash for completing 21 restructures by the third quarter.
