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POSCO Coated & Color Steel Co will terminate the joint venture operation with military-backed Myanmar Economic Holdings Limited (MEHL) following the Myanmar military’s brutal suppression of citizen protests after a coup in February.
One of the affiliates of South Korea’s leading steelmaker POSCO, POSCO C&C, has been running a joint venture called Myanmar POSCO C&C under a partnership with MEHL since 1997.
POSCO C&C owns 70 percent in Myanmar POSCO C&C with MEHL owning the remaining 30 percent.
The South Korean steelmaker is being accused of providing funds to Myanmar’s armed forces through the joint venture and is under pressure from domestic and international critics to sever business ties with the regime.
An official at POSCO C&C said that the South Korean firm plans to acquire MEHL’s stake and that it will continue to provide updates as new developments unfold.
