South Korean steelmaker Posco has announced the closure of its Wire Rod Plant 1 at the Pohang steelworks in North Gyeongsang Province. The decision was attributed to a persistent global oversupply of steel, an influx of low-priced imports, and the aging of the facility.
The Wire Rod Plant 1, which began operations in February 1979, holds historical significance as Posco’s first steel wire rod factory. Over its 45-year lifespan, the facility produced a total of 28 mln tons of steel wire.
“We’ve seen a surge of cheap foreign wire rod products flooding the domestic market, driving down prices. Combined with the limitations of aging facilities, we decided to scale back the supply of low-priced items,” Posco stated.
Moving forward, the company plans to shift its focus from competing in price-driven markets to prioritizing high-value steel products. These include cold heading quality steel, spring steel, and bearing steel, which cater to specialized and high-performance applications.
