Sail, Posco enter into JV

Aug. 16: Steel Authority of India Limited (Sail) and world’s fourth-largest steel maker Posco on Thursday signed a memorandum of understanding to co-operate in purchasing raw materials and sharing marketing network. “The strategic alliance between the two steel giants is a significant step towards synergising their strengths while retaining their identities in the rapidly consolidating global steel industry. Sail and Posco have been extending support and cooperation to each other in different fields,” said a Sail spokesperson.
As per the MoU, both steel companies would cooperate in information sharing and corporate strategy planning, sharing know-how in development of mines, joint usage of each other’s existing marketing and warehousing network and coordination in procuring raw materials such as coking coal and ferro alloys. Sail director (personnel) G. Ojha and Posco senior executive vice president Soung-sik Cho signed the MoU in the presence of Sail chairman S.K. Roongta at Sail’s corporate office in the national capital.
The alliance partners will establish a joint coordination group within two weeks to monitor, guide and review the implementation process of the MoU, which will be effective and operative for three years initially. After further discussion, both the companies would also cooperate in conducting joint research and development projects and other areas. Sail, which has six steel plants in the country, has an annual capacity of 15 million tonnes of crude steel. Posco, which has been seeking growth in foreign countries, plans to build a $12 billion steel complex in Orissa, which would be India’s largest foreign direct investment project.