POSCO to Expand Cold Stainless Mill Capacity in Vietnam

POSCO of South Korea expands production capacity of POSCO Vietnam Stainless, a subsidiary of stainless cold rolling mill in Vietnam, by more than 100,000 tonnes per year. POSCO aims to increase stainless cold rolling capacity by more than 300,000 tonnes per year as total including expansion of Zhangjiagang Pohang Stainless, another subsidiary in China. Production ratio of cold rolling mill is expected to reach 60% from present 50-55% against hot rolling mill capacity. The firm will raise the ratio to above 65%, even eyeing additional capacity increase.

POSCO had increased cold rolling capacity to 85,000 tonnes per year in Vietnam this year from previous 30,000 tonnes. The firm had examined additional expansion to maximum 300,000 tonnes. At Zhangjiagang Pohang Stainless, POSCO recently started expanding construction to add 200,000 tonnes capacity to present 400,000 tonnes per year.

POSCO group’s cold rolling capacity currently totals 1.435 million tonnes per year including 600,000 tonnes of Pohang Iron Works, 150,000 tonnes of POSCO Anshan Stainless and 200,000 tonnes of Qingdao Pohang Stainless. The capacity is expected to reach 1.7 million tonnes by latest expansions and represent higher than 60% against the group’s hot rolling capacity of 2.8 million tonnes.

Negotiations to acquire Thainox Stainless, Thai major stainless steel maker, have paused due to political uncertainty in the country. POSCO’s official said significance of Thainox acquisition has recently lowered for POSCO due to capacity expansions in Vietnam and other countries.