Posted on 10 Jul 2025
POSCO Group has reportedly sold its Chinese stainless steel subsidiary, securing approximately 400 billion won in funds. This move is interpreted as accelerating the business restructuring led by Chairman Chang In-hwa.
According to Chinese local media and industry sources on July 9, POSCO Holdings recently signed a contract to transfer 82.5% of its shares in Zhangjiagang Pohang Stainless Steel (PZSS), a Chinese stainless steel subsidiary, to China’s Tsingshan Group. The sale price is reported to be in the 400 billion won range. Tsingshan Group is China’s leading stainless steel company with factories in Zhejiang Province.
Zhangjiagang Pohang Stainless Steel is considered POSCO’s outpost for Chinese operations. Its stainless steel production capacity is estimated to be about half that of Korea.
However, due to oversupply from Chinese competitors, the company recorded a cumulative net loss of 377.2 billion won from 2022 to last year. Industry insiders widely predicted that it would be difficult to find momentum to recover from this in the near future.
Consequently, it appears to have become a target of the business restructuring led by POSCO Group Chairman Chang In-hwa. Since last year, POSCO has secured nearly 1 trillion won in cash by divesting assets, including a heavy oil power generation corporation in Papua New Guinea and stakes in a Vietnamese oil-fired power plant. This transfer will add approximately 400 billion won to that amount.
Source:Business Korea
