Pohang: South Korea’s leading steelmaker, POSCO, announced on Tuesday that it has shut down a wire rod mill at its factory in the southeastern city of Pohang. This move is part of the company’s strategy to enhance profitability and improve managerial efficiency.

According to Yonhap News Agency, the Unit 1 wire rod mill at the Pohang facility, located 273 kilometers southeast of Seoul, ceased operations after more than 45 years of production. The decision to close the mill was influenced by intense competition and an oversupply in the global wire rod market, largely attributed to inexpensive Chinese steel products. Additionally, the aging infrastructure of the facility contributed to the decision.

POSCO stated that the Pohang factory houses four wire rod mills, including the recently shut-down unit. Wire rods are rolled steel products made from semi-finished steel and are utilized in various applications, ranging from automotive components to construction materials.

Since its inception in February 1979, the
Unit 1 mill had generated 28 million tons of wire rod products, as confirmed by the company.