Home Economy Posco, SAIL sign deal to build synergies

Posco, SAIL sign deal to build synergies

By IANS

New Delhi : South Korea’s Posco, the world’s fourth largest steel maker, and the state-run Steel Authority of India Ltd (SAIL) Thursday forged an alliance to cooperate in areas like corporate planning, marketing and exchange of engineers, technicians and other professionals.
The two companies will also use each other’s existing marketing and warehousing network, coordinate in procuring coking coal, nickel and alloys and cooperate in research and development projects, an official statement said.

Soung-Sik Cho, senior executive vice president and member of Posco’s board and Ganatantra Ojha, personnel director of SAIL signed the agreement that will synergise operations of the two companies while retaining their identities.

“The alliance partners will establish a joint group within two weeks to monitor, guide and review the implementation process of the memorandum of understanding, which will be effective and operative for three years initially.”

POSCO and SAIL have been cooperating with each other in different fields. This alliance will reinforce the ties and open an era of large-scale collaboration on strategic business and commercial alignment, the statement said.

Posco has a deal with the Orissa government in June 2005 to set up an integrated steel plant near the port town of Paradeep in the coastal district of Jagatsinghpur by 2016.