SAIL-POSCO ink MoU to synergise biz strengths

New Delhi, Aug 16: Steel Authority of India Ltd (SAIL) today said it has inked a memorandum of understanding (MoU) with Korean POSCO to establish a strategic alliance for aligning and cooperating with each other in a wide range of strategic business and commercial interest areas.

According to a statement, the MoU states that the alliance partners have agreed to cooperate in the areas of information sharing in corporate strategy planning, exchange of engineers, technicians and other professionals and sharing of know-how and expertise in the areas of development of mines and business practices such as ERP, PI and Six Sigma.

The MoU also caters to joint usage of each other's existing marketing and warehousing network and coordination in procurement of coking coal, nickel and ferro-alloys and engagement of transportation vessels.

The statement added that both the companies will also explore possiblities in cooperating in areas relating to joint R&D projects and any other projects to be mutually agreed upon.

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. This alliance will not only reinforce the relationship but also open an era of large scale collaboration on strategic business and commercial alignment, the statement added.

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, the statement informed.

The MoU was signed by SAIL Director (Personnel)G Ojha and Posco Senior Executive Vice President and Member of Board Soung-sik Cho.

POSCO plans to build a 12 billion dollar steel complex in Orissa, which would be India's largest foreign direct investment project.

UNI