Korea’s Posco Group is considering selling Posco Zhangjiagang Stainless Steel (PZSS) in China, part of a broader effort by Chairman Jang In-hwa to restructure low-profit and non-core assets, according to the local media reports.
PZSS, a joint venture in Jiangsu Province established in 1997, is Posco’s only steel plant in China. Posco Holdings and Posco China hold an 82.5pct stake, with Shagang Group owning 17.5pct. The plant has a crude steel production capacity of 1.1 mln tons annually.
Posco is exploring the sale due to continued losses, with PZSS reporting an operating loss of USD 130 mln last year, the largest among Posco’s 38 overseas subsidiaries. The plant’s profitability has been hit by an oversupply of stainless steel in China, where production capacity exceeds demand.
As part of its restructuring, Posco aims to divest 125 businesses and assets by 2030, having already completed 21 sales by Q3 2024.
