POSCO Group is restructuring its global manufacturing operations, prioritizing new steel production investments in India and the United States, according to a report by Business Korea. The South Korean company aims to support these expansions through the sale of non-core assets and a shift toward localized manufacturing strategies.
In India, POSCO is pursuing the construction of a steel plant through a joint venture with Indian steelmaker JSW. In the United States, the company is considering investment in Hyundai Steel’s Louisiana plant. POSCO is also evaluating potential capacity expansion at its facility in Indonesia.
The company plans to withdraw from the Chinese market by selling its Zhangjiagang Pohang Stainless Steel plant, which began operations in 1997. In 2024, the plant’s operation rate fell to 69.8%, resulting in an operating loss of 129.9 billion won (approximately USD 89.5 million), amid increased competition from local Chinese manufacturers.
To finance its strategic shift, POSCO raised 662.5 billion won in 2024 by selling assets such as the Papua New Guinea heavy oil power corporation and shares in Nippon Steel. It aims to secure an additional 2.7 trillion won through further divestments to fund its India and U.S. initiatives.
Trade restrictions and high transportation costs have made localized production more viable. U.S. tariffs on imported steel, first imposed in 2018, led POSCO to explore regional manufacturing options due to export limitations.
Chairman Jang In-hwa said, “Let’s achieve results through ‘local complete investment’ in India and the U.S.,” referring to a model in which steel is produced entirely within the target region—from raw materials to finished products.