According to the information obtained by SteelOrbis, South Korean steel giant POSCO has dismissed speculation about the potential sale of its Turkish subsidiary, POSCO Assan TST, following reports of mounting losses due to Chinese imports. The company underlined that it has no plans to withdraw from the Turkish market and that it remains firmly committed to the market.
Background: losses amid Chinese import pressure
Media reports suggested that the surge of low-priced Chinese stainless steel has eroded profitability in Turkey. According to these claims, POSCO Assan TST has recorded cumulative losses of nearly $200 million since 2013, raising doubts about POSCO’s long-term regional strategy.
However, POSCO clarified that these reports are unfounded. The Turkish operations continue “as usual,” with no intention of divestment, it noted.
POSCO Assan TST: a strategic investment
Established in 2011 in Izmit, Turkey, POSCO Assan TST is a joint venture between POSCO, Kibar Holding, and Daewoo International. The plant has an annual production capacity of 200,000 metric tons, supplying both the domestic market and neighboring regions. This strategic foothold allows POSCO to serve Europe, the Middle East, and North Africa.