Samsung Electronics, POSCO join hands for steel supply, technology cooperation

Samsung Electronics Co. and POSCO logos [Courtesy of each company]

South Korean tech giant Samsung Electronics Co. and top steelmaker POSCO are set to strengthen partnership in steel supply and other areas such as technological exchanges to develop eco-friendly and high-performance steel.

The enhanced ties come as POSCO Vice Chairman Kim Hag-dong visited Samsung Electronics’ Suwon plant in Gyeonggi Province and met with the company’s key executives including Vice Chairman Han Jong-hee.

The meeting was held after the two companies concluded a long-term supply contract last month.

POSCO and Samsung Electronics’ home appliance and visual display divisions signed a three-year contract on the supply of cold-rolled and plated steel products for home appliances and electrical steel products. It was the first long-term supply deal between the two companies.

The contract is aimed at ensuring stable purchase of steel products by POSCO using its integrated supply chain of overseas entities to boost the home appliance business of Samsung Electronics, one of the electronic giant’s focus areas.

Under the deal, POSCO plans to increase the supply by 25 percent. The company will also provide color steel products through its affiliate POSCO Steeleon Co. in addition to expanding the supply of cold-rolled and plated materials, electrical steel sheets, and stainless steel.

During Kim’s latest visit to Samsung Electronics’ Suwon plant, the two companies agreed to expand technological exchanges to develop eco-friendly and high-performance steel materials and seek new business opportunities. POSCO, in cooperation with Samsung Electronics, will develop a lightweight, high-strength stainless steel product for refrigerator doors that is 20 percent thinner and 50 percent stronger. Supply will begin within this year.

POSCO also plans to supply high performance, high strength, and high corrosion-resistant steel plates such as the self-developed galvanized steel named POSCO Magnesium Alloy Coating Product (PosMAC).