POSCO Flow said on the 5th it will establish local subsidiaries in Bangkok, Thailand, and Ho Chi Minh City, Vietnam. The move aims to target the Global South to stabilize the group's supply chain amid global supply chain realignment.
The POSCO Flow Thailand subsidiary opened on the 3rd. The company said the Thailand unit is the result of a strategic partnership signed in February with KSSP (Kerry Siam Seaport) in Thailand.
POSCO Flow plans to provide logistics services in Thailand such as transportation, storage, and stevedoring for the group's materials and products to attract new volumes in the region and help improve profitability by expanding transportation modes.
The Thailand subsidiary opening ceremony was held on the 3rd, with Chief Executive Ban Don-ho of POSCO Flow and Chief Executive Oh Hong-seop of POSCO TCS, as well as local POSCO group officials, in attendance.
On the 4th, POSCO Flow also held an opening ceremony for a local subsidiary in Ho Chi Minh City, Vietnam. Vietnam is a key market where more than seven production subsidiaries and processing centers of the POSCO Group operate.
Through the local subsidiaries, POSCO Flow expects to integrate the group's logistics operations that had been run in a dispersed manner, improving efficiency and reducing expense.
Chief Executive Ban and others, including Chief Executive Seo Jong-deok of POSCO Vietnam and local group officials, attended the Vietnam subsidiary opening ceremony.
POSCO Flow said the Thailand and Vietnam subsidiaries will serve as complementary bases that strengthen the group's Southeast Asia supply chain in a balanced way.
Specifically, Thailand will provide logistics services tailored to a market focused on high value-added materials and customized products, while Vietnam will serve as a logistics hub that reliably supplies steel products, reflecting its concentration of large-scale production logistics.
Chief Executive Ban said, "The establishment of the two subsidiaries is an important foundation that makes the POSCO Group's global supply chain more robust, and going forward, POSCO Flow will execute logistics strategies tailored to each country's characteristics to strengthen efficiency and competitiveness."