New Delhi, August 16, 2007: POSCO, the fourth largest steel maker in the world and Steel Authority of India Ltd (SAIL), India’s largest steel company, signed a landmark memorandum of understanding (MoU) today, to establish a strategic alliance for aligning and cooperating with each other in a wide range of strategic business and commercial interest areas. Mr. Soung-sik Cho, Senior Executive Vice President & Member of the Board, POSCO and Mr. G. Ojha, Director (Personnel), SAIL, signed the MoU on behalf of POSCO and SAIL respectively. SAIL Chairman Mr. S.K. Roongta and officials of both POSCO & SAIL were present during the ceremony held at SAIL’s Corporate Office in New Delhi.
The MoU states that the alliance partners have agreed to cooperate in the following areas of business:
ØInformation sharing in the area of corporate strategy planning;
ØExchange of engineers, technicians and other professionals;
ØSharing of know-how and expertise in the areas of development of mines and business practices such as ERP, PI and Six Sigma;
ØJoint usage of each other’s existing marketing and warehousing network; and
ØCoordination in procurement of coking coal, nickel and ferro-alloys and engagement of transportation vessels.
Subject to further discussions, both companies will also cooperate in areas relating to joint R&D projects and any other projects to be mutually agreed upon.
This strategic alliance between the two steel giants is a significant step towards synergizing their strengths while retaining their identities in the rapidly consolidating global steel industry.
POSCO and SAIL have been extending support and cooperation to each other in different fields. This alliance will not only reinforce the relationship but also open an era of large scale collaboration on strategic business and commercial alignment.
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.