Posco Sells Majority Stake in Chinese Stainless Steel Plant.

The largest steel manufacturer in South Korea, Posco Group, recently sold the majority of its stake in Zhangjiagang Pohang Stainless Steel Company (ZPSS), a Chinese company.

Posco’s larger strategy to concentrate on more lucrative and rapidly expanding markets includes this action. For about KRW 400 billion (roughly US$291 million), Posco sold its 82.5% stake in ZPSS to Tsingshan Holding Group of China. The Chinese company Jiangsu Shagang Group still owns 17.5% of the plant. Posco’s first fully integrated stainless steel facility outside of South Korea was the ZPSS factory. It was one of Posco’s major overseas plants, capable of producing 1.1 million metric tons annually.

It was strategically important because its production surpassed more than half of South Korea’s total output of stainless steel. Due to fierce competition and overproduction, which has kept prices low, China’s steel industry has not been very profitable despite the plant’s enormous capacity.

Posco reexamined and started restructuring its overseas operations under Chairman Chang In-hwa last year as a result of these circumstances. Posco wants to increase overall profitability by focusing on quickly developing economies like the US and India and avoiding lower-margin markets. Posco makes a deliberate move to streamline its global presence by selling off ZPSS, which frees up more funds for higher margin markets. A significant portion of Posco’s continuous effort to boost its worldwide productivity and profitability is the divestment.

Reference:

Just Auto. (2025, July 10). Posco sells Chinese steel plant. Retrieved from https://www.just-auto.com/news/posco-sells-chinese-steel-plant/