South Korea's POSCO and China's Tsingshan Holding Group recently signed an agreement to jointly build a stainless steel factory with an annual capacity of 2 million tons in the Morowali Industrial Park on Sulawesi Island, Indonesia. The total investment in the project exceeds US$70.83 million, with POSCO holding 44.1% and Tsingshan Holding holding 55.88%. The new factory's capacity is close to South Korea's total stainless steel production, and construction is expected to start in 2026.
This cooperation marks POSCO's strategic shift towards the Southeast Asian market. In July 2025, POSCO just sold its 1.1 million ton stainless steel factory in China to Tsingshan Holding. Currently, POSCO operates the Krakatau POSCO integrated steel mill in Indonesia with an annual capacity of 3 million tons (commissioned in 2013). The new project will strengthen its industrial layout in Southeast Asia and meet regional market demand.
POSCO has recently accelerated the restructuring of its overseas business, successively divesting its electrical steel plant in China and construction subsidiary in Vietnam, concentrating resources on high-growth areas. This stainless steel project is a key initiative for Indonesia's industrial development and will further enhance the country's position in the global stainless steel supply chain.
South Korea's POSCO and China's Tsingshan Holding Group recently signed an agreement to jointly build a stainless steel factory with an annual capacity of 2 million tons in the Morowali Industrial Park on Sulawesi Island, Indonesia. The total investment in the project exceeds US$70.83 million, with POSCO holding 44.1% and Tsingshan Holding holding 55.88%. The new factory's capacity is close to South Korea's total stainless steel production, and construction is expected to start in 2026.
This cooperation marks POSCO's strategic shift towards the Southeast Asian market. In July 2025, POSCO just sold its 1.1 million ton stainless steel factory in China to Tsingshan Holding. Currently, POSCO operates the Krakatau POSCO integrated steel mill in Indonesia with an annual capacity of 3 million tons (commissioned in 2013). The new project will strengthen its industrial layout in Southeast Asia and meet regional market demand.
POSCO has recently accelerated the restructuring of its overseas business, successively divesting its electrical steel plant in China and construction subsidiary in Vietnam, concentrating resources on high-growth areas. This stainless steel project is a key initiative for Indonesia's industrial development and will further enhance the country's position in the global stainless steel supply chain.