Steel Authority of India Ltd (SAIL), India's largest steel producer and a Navratna PSU, and POSCO, Korea's largest steel company, today signed a landmark memorandum of understanding (MoU) to establish a strategic alliance for aligning and cooperating with each other in a wide range of strategic business and commercial interest areas. Mr. G. Ojha, Director (Personnel), SAIL, and Mr. Soung-sik Cho, Senior Executive Vice President and Member of Board, POSCO, signed the MoU in the presence of SAIL Chairman Mr. S.K. Roongta at SAIL's Corporate Office in the Capital.
The MoU states that the alliance partners have agreed to cooperate in the following areas of business :
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.
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 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.