POSCO plans to close 10 non-core branches

At the first meeting of the POSCO Board of Directors after the inauguration, Chairman Kwon Oh Zhong decided to close some of the underperforming subsidiaries within the next three years.

Of the 46 existing subsidiaries, more than 10 are losing money in non-core areas and are subject to scrapping or mergers as part of the company's desperate restructuring plan. It is for this purpose that the conglomerate must classify its divisions into seven groups: steel production, energy, materials, infrastructure, trade, services and others.

It remains to be decided what to do with Daewoo International, a large trading company in the country, whose stakes in POSCO acquired in 2010. It is expected that POSCO will not sell the company in the near future, so as not to lose most of the investment. Instead, the company is likely to focus on increasing Daewoo's role in overall strategy.

POSCO wants to sell shares in its subsidiaries, which have little to do with the core business. The new project calls for a focus on Posco's core industries and pushing for higher credit ratings. The POSCO Group has halved its sales last year compared to 2011. Net income also fell from $ 3.7 trillion. Korean won to 1.4 trillion. Korean won over the same period.

Experts believe that in the past, POSCO has tried to increase its volumes through diversification in new areas and, to some extent, this strategy has led to a worsening of the situation. Now the new chairman, Kwon, hopes to strengthen POSCO's operations and improve its financial structure. From the point of view of POSCO shareholders, this approach is optimal.