POSCO sells stake in Chinese stainless steel mill: sources
POSCO Center / Courtesy of POSCO Holdings
By Yonhap
POSCO Holdings Inc., the holding company of Korea's leading steelmaker POSCO, has sold its entire stake in a Chinese stainless steel joint venture for around 400 billion won ($291 million), industry sources said Wednesday.
According to the sources, POSCO Holdings had signed a preliminary deal to sell its 82.5 percent stake in the Zhangjiagang Pohang Stainless Steel (PZSS) steel mill to China's Qingshan Group, the No.1 stainless steelmaker there.
PZSS, set up in China's eastern Jiangsu province in 1997, has an annual capacity of 1.1 million tons.
Recently, the steel mill has been suffering losses due to oversupply and an economic slowdown in the world's No.2 economy.