New Delhi: Public sector firm SAIL and world’s fourth largest steel maker Posco have entered into a strategic partnership to cooperate in the area of purchasing raw materials and sharing marketing network in India.
The two companies signed a memorandum of understanding (MoU) today to forge a strategic alliance for cooperating in wide-ranging businesses and commercial areas, SAIL said in a statement here.
According to the MoU, SAIL and Posco 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 said subject to further discussion, both companies would cooperate in conducting joint research and development projects and other areas.
The companies would establish a joint coordination group within two weeks to monitor, guide and review the implementation process of the MoU, which will be effective for a period of three years initially.
“The strategic alliance between the two steel giants is a significant step toward synergizing their strengths while retaining their identities in the rapidly consolidating global steel industry,” SAIL said.