POSCO Holdings Inc., the parent of South Korea’s top steelmaker, will supply steel to Samsung Electronics Co. under a long-term deal, which is also expected to strengthen their technology tie-up for new business projects.
POSCO Vice Chairman Kim Hak-dong and Han Jong-hee, vice chairman and head of Samsung's Device eXperience (DX) division, on Tuesday met at Samsung’s main plant in Suwon, west of Seoul, to discuss broader business cooperation, the companies said.
Under the three-year contract, which was signed in late March but made public on Tuesday, POSCO will supply cold-rolled and coated steel as well as electrical steel products to Samsung’s home appliance and display divisions.
The deal marks the first time POSCO and Samsung have reached a multi-year contract.
“Our steel supply to Samsung will increase 25% from the current level. In addition to cold-rolled, coated and electrical steel products, we’ll also provide Samsung with color-coated steel through our affiliate POSCO Steeleon,” said a POSCO official.
NEW HIGH-STRENGTH STEEL DUE BY YEAR-END
The two companies also agreed to strengthen their technological cooperation, particularly in the development of eco-friendly and high-performance steel products, and jointly explore new businesses.
Under the partnership, POSCO plans to develop a new high-strength stainless steel product, which is 20% thinner and 50% stronger than current products, for use in Samsung’s refrigerator doors.
The steelmaker will supply the new product to Samsung by the end of this year, officials said.
For beefed-up technology cooperation, the two firms agreed to establish a tech collaboration center, dubbed Guest Engineering, at POSCO’s research institute in Songdo and Samsung’s Suwon plant, respectively, to share their expertise.
“We expect POSCO’s global supply chain to considerably contribute to Samsung’s procurement of steel and stable production of consumer electronics goods,” Kim said. “We’ll continue to jointly develop tailor-made, specialized steel products with Samsung.”
Samsung’s Han said their business cooperation will help achieve carbon neutrality through advanced technology.
