Posco to sell off non-core overseas units in China, Vietnam
According to industry sources on Monday, Posco International, the trading and resources arm of Posco Group, has agreed to sell its entire stake in Suzhou Pohang Steel to Guangdong Wcan Magnetic Materials. The transaction, valued in the 40 billion won ($29 million) range, is expected to close by June 30.
Founded in 2005, Suzhou Pohang Steel, a China steel processing subsidiary, specializes in processing electrical steel and manufacturing motor components, supplying Posco products throughout eastern China.
'It is true that the sale is part of our ongoing restructuring efforts, but final confirmation from the buyer and specific deal terms are still being finalized,' a Posco Group official said.
The decision reflects Posco International's strategic assessment that continued operations in China's oversaturated steel market are no longer necessary. Deteriorating conditions for Korean companies in China, exacerbated by rising geopolitical tensions such as US-China trade friction, also contributed to the move.
In a separate deal, Posco Engineering & Construction is negotiating the sale of its Vietnamese subsidiary, Posco E&C Vietnam. Busan-based auto parts maker Seoil Casting has been selected as the preferred bidder, and discussions over detailed terms are underway. The subsidiary has been involved in various local construction projects, including steel structures and plant facilities. The deal is estimated to be worth around 17 billion won.
Established in 1995 as a joint venture between Posco Construction and Vietnamese state-owned Lilama, holding 70 percent and 30 percent stakes respectively, Posco E&C Vietnam became wholly owned by Posco after it acquired Lilama's stake in 2010. However, the unit has faced persistent challenges, with reports indicating it had fallen into complete capital erosion by mid-2023.
The recent moves are part of a broader restructuring initiative announced last year, under which Posco plans to liquidate or divest more than 120 underperforming or non-essential businesses by 2026. The goal is to raise some 2.6 trillion won to reinvest into its core pillars: steel and battery materials. As of the first quarter, the group had already achieved 40 percent of the target.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
3 hours ago
- Korea Herald
AMI Launches Developer Program for Arm Total Design to Rapidly Accelerate Arm-based Chiplet Development
ATLANTA, Aug. 12, 2025 /PRNewswire/ -- AMI® is proud to announce the AMI Developer Program for Arm® Total Design, specifically designed to enable Arm Total Design ecosystem partners to streamline the process of developing, testing, validating, and hardening custom silicon, including chiplets, powered by Arm Neoverse™ Compute Subsystems (CSS). Additionally, the program offers a simpler, more cost-effective pathway for the Arm Total Design ecosystem to transform their unique designs into market-ready products. Sanjoy Maity, CEO of AMI, stated that, "Our goal with this new program is to ensure silicon designers get full access to necessary firmware technology and IP blocks that help them bring Arm-based custom silicon to life and fine tune their products very quickly, while still allowing them to remain within their project budget. By leveraging AMI firmware products, together with the benefits of Arm Total Design, we aim to help the ecosystem rapidly arrive at their point of commercialization." Srivatsan Ramachandran, SVP of Strategic Partnerships at AMI, noted, "The AMI Developer Program for Arm Total Design brings together custom silicon designs, dynamic firmware, and advanced ecosystem partner technologies in a rapid and collaborative way to shift-left Arm-based custom silicon designs. Most importantly, the Developer Program will eliminate many of the roadblocks faced by a traditional commercial engagement, facilitating smoother and quicker entry into the design process." The AMI Developer Program for Arm Total Design features generous licensing terms for our Exclusive and Early Adopter Partners for AMI firmware solutions like OpenBMC™-based MegaRAC OneTree™ Manageability Firmware and Aptio® V UEFI Firmware, and much more. Contact AMI or visit our website for more details on the complete terms and conditions of the Developer Program, the benefits of working with AMI, and to get started on your Arm Neoverse CSS-based chiplet design journey today. Arm and Neoverse are registered trademarks and trademarks of Arm Limited (or its subsidiaries or affiliates) in the US and/or elsewhere. Aptio and MegaRAC are registered trademarks of AMI US Holdings, Inc. OpenBMC is a trademark of LF Projects, LLC. All other registered trademarks and trademarks are the property of their respective companies. About AMI AMI is Firmware Reimagined for modern computing. As a global leader in Dynamic Firmware for security, orchestration, and manageability solutions, AMI enables the world's compute platforms from on-premises to the cloud to the edge. AMI's industry-leading foundational technology and unwavering customer support have generated lasting partnerships and spurred innovation for some of the most prominent brands in the high-tech industry.
Korea Herald
7 hours ago
- Korea Herald
National security adviser meets visiting US representatives ahead of Lee-Trump summit
National Security Adviser Wi Sung-lak met with two visiting US Representatives on Tuesday and discussed ways to bolster industrial cooperation and the alliance between the two nations, the presidential office said. Wi met Rep. Beth Van Duyne and Rep. Richard McCormick, as President Lee Jae Myung is preparing to hold his first summit with US President Donald Trump in Washington on Aug. 25. He highlighted that Korean companies have been investing in strategic sectors, such as semiconductors and automotive batteries, in their districts of Texas and Georgia, asking for their support to further advance the bilateral alliance and industrial cooperation for "win-win" outcomes, the office said in a release. Samsung Electronics has been building a new semiconductor manufacturing facility in Taylor, Texas. Hyundai Motor Group is constructing a new electric vehicle plant in Georgia and partnering with Korean battery maker SK On to build a battery plant there, in addition to SK On's two battery plants in the state. Wi expressed his expectation that Lee and Trump will reaffirm the strong alliance and have in-depth discussions on ways to advance it, and the two lawmakers pledged their full support for a successful summit, the office said. Van Duyne and McCormick also promised to support further US investments by Korean companies to strengthen economic cooperation and pledged to work together for bipartisan support in Congress for the Korea-US alliance, it noted. (Yonhap)
Korea Herald
8 hours ago
- Korea Herald
Intas & Accord signs Agreement to acquire Prothya Biosolutions
AHMEDABAD, India, Aug. 11, 2025 /PRNewswire/ -- Accord Plasma B.V., a subsidiary of Intas Pharmaceuticals, has announced the execution of an agreement to acquire 100% of Prothya Biosolutions Belgium BV and each of its subsidiaries, a leading plasma-derived medicinal products (PDMP) business based primarily in the Netherlands and Belgium. Subject to the satisfaction of customary closing conditions, including regulatory clearances, the deal is anticipated to close shortly. This proposed acquisition marks a significant step in Intas and Accord's long-standing ambition to establish a global presence in the PDMP market, expanding Intas's established leadership in India into a truly international footprint. Prothya Biosolutions, with primary operations in Amsterdam and Brussels and plasma collection centres across Hungary, employs approximately 1,200 people. The company is one of Europe's largest plasma fractionators. Formed in 2021 through the integration of Plasma Industries Belgium, originally linked to the Belgian Red Cross, and Sanquin Plasma Products, formerly a part of the Sanquin Blood Supply Foundation, Prothya brings over 60 years of experience in plasma collection and the development of PDMPs. Binish Chudgar, Chairman of Intas & Accord, stated: "We are delighted to expand our plasma business through the acquisition of Prothya Biosolutions. Combined with our fractionation capabilities in India, this positions us to create a truly global plasma platform—serving patients worldwide with critical, often under-prescribed, therapies." Intas's plasma division in India has been supplying hospitals with PDMPs since 2015, supported by an annual fractionation capacity of over 1 million litres and exports to multiple international markets. Additional capacity is due to come online with the expansion of Intas's Gujarat-based facility. Nir Epstein, CEO of Prothya, commented: "Over the past four years, we've expanded into new markets, advanced critical therapies, established our own plasma collection network in Hungary, and supplied plasma derivatives to some of the world's leading PDMP companies—all while building a stronger, more resilient organization. I want to thank our dedicated team for their unwavering commitment to our patients. I believe Accord is the right company to support Prothya and its people in the next phase of growth and global expansion." The global market for PDMPs—particularly IVIG (intravenous immunoglobulin)—is currently valued at $30 billion and is expected to reach $50 billion by 2035. This acquisition will give Intas access to significant additional fractionation capacity, supported by Accord's commercial footprint spanning 85 countries. BofA Securities is acting as the exclusive financial advisor to Accord in this transaction. Evercore is acting as the exclusive financial advisor to Prothya in this transaction. About Intas: Intas Pharmaceuticals Ltd. is a leading vertically integrated pharmaceutical company based in Ahmedabad, India, having end-to-end capabilities of formulation development, manufacturing, and marketing along with backward integration of APIs. Intas also has strong in-house biosimilar development and marketing capabilities, with more than 15 products being marketed. Intas is committed to expanding global healthcare access by providing affordable, high-quality medications through strategic partnerships and extensive R&D investment to meet the diverse needs of healthcare systems around the world. Intas has set up a network of subsidiaries, under the umbrella name of Accord Healthcare, to operate in global markets. Over the years, Intas has grown both organically and via acquisition, expanding its product portfolio and operations year on year. It is currently present in more than 85 countries worldwide with robust sales, marketing and distribution infrastructure in markets like North America, Europe, Central & Latin America, Asia-Pacific as well as CIS and MENA countries. Intas's remarkable success in North America and European operations has helped us emerge as a global brand in the world's largest pharmaceutical markets.
