POSCO Holdings will accelerate its steel investments in Indonesia, India, and the US under its global growth strategy. The company aims to increase its overseas crude steel production capacity from 5 million mt to 10 million mt by 2031, with a new integrated production investment in Indonesia serving as the centerpiece of this expansion.
Under its Corporate Value Enhancement Plan, the company plans to invest a total of KRW 29.1 trillion during the 2025-2028 period. Of this amount, KRW 6.7 trillion (approximately USD 4.67 billion) will be allocated to overseas steel projects, representing the largest share of the planned investments.
POSCO aims to strengthen its regional production chain by expanding the Krakatau POSCO facility, which it operates jointly with Krakatau Steel in Indonesia. Upon completion of the investment, the facility will have an integrated production system covering everything from molten iron production to high-value-added steel products for the automotive industry.
As part of the second-phase investment, cold rolling and galvanizing lines will be added to the existing slab, heavy plate, and hot rolled coil production facilities. This will enable the end-to-end production of high-strength and specialty steels required by automotive manufacturers in Indonesia.
The company also plans to strengthen its stainless steel production structure. By expanding upstream production capacity covering the melting and refining of stainless steel raw materials, POSCO aims to increase the share of high-value-added products in its total output.
The structure, which POSCO describes as "Southeast Asia's first integrated production system," will not only process imported steel but will also integrate ironmaking from the blast furnace stage, steelmaking, rolling, and coating within a single production chain.
POSCO's growth strategy isnt limited to Indonesia. In India, the company is continuing construction of a 6 million mt per year integrated steel plant in Odisha through an equal joint venture with JSW Steel. Following an approximately 48-month construction period, the facility is scheduled to begin operations in 2031. It is expected to initially supply the construction and infrastructure sectors before later expanding into the automotive and galvanized steel markets.
In the US, POSCO aims to strengthen its presence in the North American market by participating as a partner in Hyundai Steel's electric arc furnace-based integrated steel plant in Louisiana. The USD 5.8 billion project, scheduled to begin operations in 2029, will have an annual production capacity of 2.7 million mt of hot rolled and cold rolled flat steel. The company is also considering expanding its US production network through a potential partnership with Cleveland-Cliffs.
Through these investments across the three countries, POSCO Holdings aims to strengthen its presence in rapidly growing markets while increasing its total overseas crude steel production capacity to 10 million mt by 2031, significantly enhancing its global competitiveness.
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