On July 4, Tsingshan Group completed the acquisition of 82.5 % equity in POSCO Zhangjiagang Stainless Steel, concluding an eight-month cross-border merger. 

Despite POSCO Zhangjiagang’s three years of consecutive losses, Tsingshan aims to benefit from POSCO’s brand value, international certifications, and customer base in high-end applications such as home appliances and automotive exhaust systems. 

The acquisition also provides access to overseas sales networks and patented ferritic stainless steel technologies. Additionally, it supports Tsingshan’s strategy of integrating Indonesian nickel with Chinese cold rolling to reduce tariffs under ASEAN origin rules. 

After the deal, Tsingshan’s annual stainless steel output is expected to reach 15 million tons, representing 37% of China’s total, significantly enhancing its pricing power.