POSCO Group (POSCO Holdings) is reviewing the sale of its electric steel sheet production subsidiary in China and its construction-related subsidiary in Vietnam. This is part of a restructuring effort for low-profit businesses and non-core assets.
According to the steel industry on the 22nd, POSCO Group is considering selling its equity in Suzhou POSCO-CORE Technology, a Chinese steel subsidiary, to Guangdong WCAN Magnetic Materials Co., Ltd.
The subsidiary was established in 2005 in Suzhou, Jiangsu Province, China, and has been producing and supplying electric steel sheets and motor parts in the eastern region of China.
The equity is held by POSCO INTERNATIONAL with 50.8%. The remainder is held by POSCO with 23.8%, POSCO Mobility Solution with 21.1%, and P-ASIA with 4.3% each.
POSCO E&C is also considering the sale of its local subsidiary, POSCO E&C Vietnam. The corporation was established in 1995 through investments of 70% by POSCO E&C and 30% by the local state-owned corporation Lilama, and now POSCO E&C holds all the equity.
Since Chairman Jang In-hwa's appointment in March last year, POSCO Group has been restructuring 125 low-profit businesses and non-core assets. The group has completed the restructuring of 45 assets by last year, securing 662.5 billion won in cash.
An official from POSCO Group said, "While we are reviewing the sale as part of the restructuring, there are currently no specific details confirmed."