Oversupply, low-cost offensive...Pohang Steel Mill's 1st Wire Factory Closed

POSCO's first-tier steel plant in Pohang Steelworks, which has been operating for more than 45 years, has been closed due to oversupply of global steel and worsening profitability.

POSCO said its first-tier plant, which began operation in 1979, has completed its last production today (19th).

This is the second closure following the first steel plant in Pohang last July.

For 45 years and 9 months, the 1st wire factory has produced 28 million tons of wire products used in nails, screws, and tire cords.

POSCO said it has decided to close the global market because it believes production is rather a loss due to the ongoing oversupply and the offensive of low-cost steel materials from overseas such as China.

In the future, products produced at the first wire plant will be produced at factories 2, 3, and 4, and employees will be rearranged after organizing the plant by the end of this month.