POSCO Daewoo will make a full-fledged foray into the global downstream market of automotive steel plates in partnership with a Korean automobile parts maker.
POSCO Daewoo is seeking to break away from the simple trading business and build a long-term growth base by strengthening its value chain, which includes production, processing and sales in the steel business.
On September 13, POSCO Daewoo signed a memorandum of understanding (MOU) on the supply and sale of parts for global automobile companies with Sungwoo Hitech. A signing ceremony was held at the POSCO Daewoo building in Songdo of Incheon with the attendance of Sungwoo Hitech chairman Lee Myung-keun and Sungwoo Hitech president Kim Young-sang.
Through this MOU, the two companies will build an integrated supply chain for materials for steel products and vehicle parts, starting in the Americas and India, and secure cost competitiveness. The companies believe that they will be able to cope with changes in the automobile industry where global production is on the rise.
The two sides also plan to develop optimized solution marketing in areas ranging from processing and sales to technical support by solidifying their strategic partnership and carry out joint marketing campaigns for new models of global carmakers such cooperation in the future.