According to Newsis,
(Seoul=Newsis) Lee Chang-hoon = POSCO Holdings aims to simultaneously address U.S. tariffs and secure new growth engines by boldly restructuring its overseas production bases. It intends to reorganize its overseas production bases around the U.S. and India by selling its local steel mills in China while establishing new steel mills in the U.S. and India.
The strategy is to secure new production bases in high-profitability markets instead of boldly disposing of low-profit and non-core assets. Through this, the plan is to speed up the improvement of its business structure centered on profitability.
According to the industry on the 30th, POSCO Holdings will complete the sale process of its Chinese stainless steel mills, Zhangjiagang Pohang Stainless Steel and Qingdao Pohang Stainless Steel, in the first quarter of this year.
As the Chinese government has recently approved the sale, it is projected that POSCO Holdings will sell these steel mills to the Chinese steel company Tsingshan Group within the first quarter.
POSCO Holdings' sale of the Chinese steel mills is part of its business structure improvement centered on profitability. The strategy is to liquidate Chinese steel mills that have generated deficits of over KRW 100 billion annually and utilize the funds secured through this for future businesses.
In fact, POSCO Holdings is carrying out large-scale investments to build new steel mills. A representative example is starting construction of an electric arc furnace steel mill in the U.S. this year.
POSCO Holdings will secure a 20 percent stake by investing in an electric arc furnace steel mill with an annual production capacity of 2.7 million tons that Hyundai Motor Group is building in Louisiana, U.S.
POSCO Holdings plans to minimize the financial burden of the investment by borrowing 50% of the total investment amount of USD 580 million (KRW 833.6 billion).
POSCO Holdings plans to drastically reduce the U.S. tariff burden, which amounts to 50%, by utilizing the U.S. steel mill. The strategy is to offset the tariff burden by supplying steel products made at the U.S. steel mill to clients within the U.S.
POSCO Holdings also signed a Memorandum of Understanding (MOU) for strategic cooperation with the U.S. steel company Cleveland-Cliffs last October.
Through this cooperation, POSCO Holdings will combine its global network with Cliffs' local steel mill capabilities in the U.S. The plan is to secure integrated supply capabilities of both companies to strengthen bargaining power with finished car companies.
There are observations that POSCO Holdings will carry out an investment to secure a 10-20 percent stake in Cliffs.
In addition, POSCO Holdings will cooperate with the Indian steel company JSW Group to secure a steel mill with an annual production capacity of 6 million tons in India. The method involves both sides holding a 50 percent stake in the steel mill each.
Through this, POSCO Holdings will preempt the Indian market early, where steel demand is increasing by 9-10 percent annually.
An industry official said, "As POSCO Holdings begins full-scale construction of steel mills in the U.S. and India this year, the pace of restructuring overseas production bases will accelerate," adding, "It is a strategy to seek both a response to U.S. tariffs and the securing of new growth engines by securing steel mills locally in the U.S. and India."
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Source Text
Source: Newsis (January 30, 2026)
** This article was translated from Korean.