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Photo = POSCO FutureM |
[Alpha Biz= Kim Jisun] SEOUL, June 22, 2025 — POSCO Group is moving to sell its Chinese electrical steel processing subsidiary and a Vietnamese construction affiliate, as part of a broader strategy to streamline low-profit and non-core assets.
According to steel industry sources, POSCO International is seeking buyers for its wholly owned Chinese subsidiary, Suzhou Pohang Special Steel Co., Ltd., which has been engaged in processing electrical steel and manufacturing motor components in eastern China.
POSCO E&C Vietnam, a wholly owned subsidiary of POSCO E&C, is also on the block. Originally established in 1996 as a joint venture between POSCO Construction (70%) and Vietnamese state-owned Lilama (30%), the company has handled large-scale plant and construction projects in Vietnam. POSCO E&C, the successor of POSCO Construction, now holds 100% of the shares.
A POSCO Group official confirmed the divestment efforts, stating, “We are indeed pursuing the sales as part of ongoing restructuring, though details including potential buyers and specific terms have not been finalized.”
The group reported that its restructuring efforts in 2023 led to the disposal of over 120 assets, generating KRW 662.5 billion (approx. USD 480 million) in liquidity. This move comes in response to deteriorating business conditions such as U.S. steel tariffs, a slowdown in EV market growth, and oversupply from Chinese steel producers.
POSCO aims to reinvest proceeds from these divestments into growth initiatives, including advanced steel and secondary battery materials, to secure long-term competitiveness once market conditions improve.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
