Pomina Steel Corporation (POM) is facing serious financial difficulties with negative working capital and liquidity loss due to Covid-19 and the Russia-Ukraine conflict. The investment for the blast furnace project increased from 2,833 billion to 5,880 billion VND, creating significant debt pressure. The government intervened, requiring banks to support businesses, but Pomina still had to cut production and ceased operations since September 2022. The share transfer to Nansei Co., Ltd faced hurdles due to regulations limiting foreign ownership. Negotiations with THACO Industries also failed due to differences in strategy and industry understanding. Pomina is planning to collaborate with the Vietnam Steel Corporation (VNSteel) to establish a new company with a capital of 2,700 – 2,800 billion VND, aiming to mitigate losses and rectify its financial situation. Pomina is expected to finalize financial reports for 2023-2025 by Q2 2026.
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