South Korean steel giant POSCO will jointly build a stainless steel plant in Indonesia with China’s Tsingshan Holding Group. This move marks POSCO’s shift in focus from stainless steel production in China to the rapidly growing Southeast Asian market.
The new plant will be located in the Morowali Industrial Park on Sulawesi Island and will have a designed annual production capacity of 2 million tons, nearly equivalent to South Korea’s total stainless steel production.
According to the agreement, POSCO will acquire a 44.12% stake in PT Xinheng Metal Indonesia, which is controlled by PT Makmur International Investment PTE. Makmur will retain the remaining 55.88%. The two parties will jointly manage the joint venture and drive the plant’s construction.
Construction of the new plant could begin as early as next year, with POSCO’s investment expected to exceed 1 trillion won (approximately USD 708M).