POSCO and Tsingshan invest in construction of new Indonesian stainless steel plant

According to local media reports in South Korea, South Korean steel manufacturer POSCO and Chinese stainless steel manufacturer Tsingshan Holding Group have signed an agreement to build a stainless steel plant in the Morawali Industrial Park on Sulawesi Island, Indonesia. The new plant will have an annual capacity of 2 million tons, which is almost equal to the entire stainless steel production capacity in South Korea.

A project to be implemented by a joint venture

Construction of the new facility could begin as early as next year, with POSCO's investments exceeding 1 trillion Korean won ($708.3 million).

POSCO will acquire a 44.1% stake in PT Xinheng Metal Indonesia from Tsingshan subsidiary PT Makmur International Investment PTE, which will retain the remaining 55.88%. The two companies will jointly manage a new joint venture that will oversee the construction and operation of the plant.

POSCO focuses on Southeast Asia

The move follows POSCO's sale of its 1.1 million-ton stainless steel plant in China to Tsingshan in July, signaling a shift in strategic focus, as previously reported by SteelOrbis. By rebuilding its assets, POSCO is positioning Southeast Asia as its new stainless steel production base. The steel mill has already operated Krakatau POSCO, an integrated steel mill with a capacity of 3 million tons, since 2013 in Indonesia. The new stainless steel project will further strengthen the company's presence in the region.