A legal dispute has emerged between Kibar Holding and South Korea’s POSCO over their joint venture Posco Assan TST, Turkey’s only stainless steel cold rolling producer, according to Turkish media reports.
Kibar Holding has reportedly initiated two legal proceedings, including a request for the dissolution of the partnership and claims related to the company’s profit distribution and corporate governance. The holding confirmed that legal action has been filed, stating that the objective is to establish a more transparent management structure.
According to the reports, the dispute centers on allegations that stainless hot rolled coil supplied by POSCO to the Turkish joint venture was priced above market levels, while finished products were sold abroad at relatively low margins, resulting in profits being transferred outside Turkey. The allegations remain under judicial review, and no court ruling has been issued.
The case, filed before the Kocaeli Commercial Court of First Instance, also reportedly includes a request to impose travel restrictions on certain South Korean executives pending the proceedings.
The dispute follows years of financial challenges at the company. In 2024, Kibar Holding CEO Haluk Kayabasi stated that Posco Assan TST had accumulated losses approaching USD 200 mln since its establishment and indicated that the partners could consider selling the business if losses continued.
Established in 2011 by Kibar Holding and POSCO, Posco Assan is Turkey’s only stainless cold-rolling mill, operating with an annual capacity of 300,000 tons.