South Korean steelmaker POSCO is reportedly considering withdrawing from its stainless cold-rolling joint venture with Kibar Holding in Kocaeli/Izmit. However, the company stated that “there are no official talks regarding a sale.”
Türkiye’s First Major Stainless Plant
Established in 2011 with an investment of $350 million, POSCO Assan TST has an annual capacity of 200,000 tons, making it Türkiye’s first and largest stainless cold-rolling facility.
Chinese Competition Erodes Profitability
According to industry sources, the growing influx of low-priced Chinese products into the Turkish market has weakened the competitiveness of local producers. As a result, the plant is estimated to have accumulated losses of around $200 million between 2013 and 2024.
Global Restructuring Strategy
POSCO aims to strengthen its business structure by restructuring low-profit overseas subsidiaries in the face of low-priced competition from China. In July, the company sold its steel mill in Jiangsu Province, China, to a local buyer after years of deteriorating profitability, though the contract details were not disclosed.
POSCO has recently been implementing an exit strategy from low-margin investments. Along with the Jiangsu sale, the company has disposed of 56 assets since last year. The group is planning around 40 additional divestments this year, targeting a total cash inflow of 2 trillion won.
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