Hyundai Steel and POSCO Divest Chinese Subsidiaries Amid Market Challenges
Hyundai Steel and POSCO are divesting their Chinese subsidiaries to focus on profitability amid market oversupply. This shift aligns with their strategies to invest in high-growth regions and low-carbon technologies.
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Hyundai Steel sold its stake in Qingdao HSMC for 70 million yuan on March 3, marking a significant reduction in its Chinese operations. Following this sale, Hyundai Steel operates four remaining subsidiaries in China, having divested from two others in Chongqing and Beijing in 2024 due to declining profitability linked to market conditions.
Similarly, POSCO completed the sale of its stakes in Zhangjiagang PZSS and Qingdao QPSS on April 13, citing management efficiency and ongoing deficits in the stainless steel sector. Both companies are now investing in high-growth markets, including a $7.288 billion joint venture for an integrated steel mill in Odisha, India, and a new electric arc furnace facility in Louisiana, set to commence operations in 2029. The strategic shift reflects an ongoing trend of reallocating resources away from China toward more lucrative opportunities.
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