POSCO (South Korea) and Tsingshan Holding Group (China) have agreed to build a new stainless steel plant in the Morowali Industrial Park, Sulawesi, Indonesia.
The new facility will have a 2 million mt annual capacity, nearly equal to South Korea’s entire stainless steel production, signaling a major strategic shift for POSCO.
Key project details:
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Construction could begin as early as 2026.
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POSCO investment: over KRW 1 trillion (USD 708.3 million).
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Ownership: POSCO will hold 44.1% of PT Xinheng Metal Indonesia, while Tsingshan’s affiliate retains 55.88%.
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The joint venture will oversee construction and operations.
This move follows POSCO’s sale of its 1.1 million mt Chinese stainless mill to Tsingshan in July 2025, signaling a strategic realignment toward Southeast Asia. POSCO already operates Krakatau POSCO, a 3 million mt integrated steel mill in Indonesia. The new project will solidify POSCO’s regional presence and strengthen its stainless production base.
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