POSCO Future M exits P&O Chemical, transfers 51% stake to OCI

[Courtesy of POSCO Future M Co.]

POSCO Future M Co. has decided to sell its stake in P&O Chemical Co., its joint venture with OCI Co., and plans to transfer its entire 51 percent stake to OCI Co.

According to industry sources on Sunday, POSCO Future M and OCI will both hold board meetings on Monday to discuss the stake sale in P&O Chemical. POSCO Future M plans to approve the agenda for the sale of its entire stake in P&O Chemical to OCI, while OCI will vote on the acquisition of the stake.

P&O Chemical was founded in 2020 as a joint venture between POSCO Future M and OCI. It produces hydrogen peroxide and high-softening point pitch, a material used to coat graphite in battery anodes.

The stake sale is viewed to be part of POSCO Group Chairman Chang In-hwa’s business restructuring strategy. Chang previously announced plans to phase out unprofitable businesses by 2026, and P&O Chemical reported a net loss of 67.1 billion won in 2023.

The acquisition is expected to strengthen OCI’s capabilities in the battery materials sector. The company has been increasing investments in related areas, including the construction of a special materials plant for silicon anode production, which began in June 2024.