South Korean steel major Posco and Steel Authority of India Ltd (SAIL), India's largest steel company, inked a memorandum of understanding (MoU) on Thursday in New Delhi to establish a strategic alliance for aligning and cooperating with each other in a number of strategic business and commercial interest areas.
Posco is the fourth largest steel maker in the world and it has signed a MoU with the Orissa government to set up a 12-MTPA steel plant near Paradip with an investment of $12 billion. Posco's Orissa project is the biggest FDI in India.
According to the MoU, both Posco and SAIL have agreed to share information in the area of corporate strategy planning, exchange engineers, technicians and professionals, share know-how and expertise in the areas of development of mines and business practices, use each other's existing marketing and warehousing network and coordinate in procuring coking coal, nickel and ferro-alloys and for engaging transportation vessels.
Subject to further discussions, both companies will also cooperate in areas relating to joint R&D projects.