POSCO International Corp. is selling part of its spinning operation in Uzbekistan after the business logged three consecutive years of losses, marking a strategic retreat from a venture that began nearly three decades ago.
The trading arm of South Korea’s largest steelmaker reported the Uzbekistan spinning business lost 29.2 billion won ($21.7 million) in 2023, with sales dropping to 53.4 billion won. The divestment is part of Chairman Chang In-hwa’s broader restructuring initiative targeting 125 low-profit and non-core assets to generate 2.1 trillion won in cash.
Dating back to 1992 when Daewoo Group first entered Uzbekistan, the spinning business expanded in the mid-2000s with acquisitions of the Fergana and Bukhara spinning corporations. However, recent global economic headwinds and cotton market disruptions—including Brazil’s emergence as the leading cotton exporter and weakened Chinese demand—have dramatically impacted performance.
A company representative indicated this isn’t a complete withdrawal, describing the move as “management normalization by selling some of the factories.”
POSCO International is pivoting toward energy as its growth driver, planning to invest 3.2 trillion won in the sector over the next three years. Recent energy investments include a 300 billion won production increase at Australia’s Senex Energy gas field and expansion of the Gwangyang LNG terminal.
The company reported 32.3 trillion won in consolidated sales and 1.1 trillion won in operating profit last year. POSCO Group aims to secure an additional 1.5 trillion won through restructuring 61 businesses in 2025, including liquidating its joint venture with Chinese battery material company CNGR.
