Chinese and Korean companies cooperate to build stainless steel plant in Indonesia

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South Korea's POSCO Steel (POSCO) and China's Qingshan Holding Group recently signed an agreement to cooperate in the construction of 2 million tons of stainless steel plant in Indonesia's Morowali Industrial Park in Sulawesi.The total investment of the project is more than 70.83 million U.S. dollars, POSCO shareholding 44.1%, Aoyama Holdings shareholding 55.88%. new plant capacity close to the total production of stainless steel in South Korea, is expected to start construction in 2026.

This partnership marks the beginning of POSCO'sStrategic focus shifted to Southeast Asian marketsIn July 2025, POSCO just sold its 1.1 million tons stainless steel plant in China to Castle Peak Holdings. POSCO currently operates the 3-million-ton Krakatau POSCO integrated steel plant (commissioned in 2013) in Indonesia. The new project will strengthen its presence in Southeast Asia and meet regional market demand.

POSCO has recently accelerated the restructuring of its overseas operations, divesting its Chinese electrical steel and Vietnamese construction subsidiaries to focus its resources on high-growth areas. The stainless steel project is a key project in Indonesia's drive for industrial development and will further enhance the country's position in theposition in the global stainless steel industry chain.

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