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Posco and Samsung Electronics signed a three-year steel supply agreement, the steelmaker said Tuesday.
The deal, the first long-term agreement between the two companies, was signed in March.
Following the signing of the deal last month, Samsung Electronics’ Han Jong-hee, head of the DX division, and Kim Hag-dong, vice chairman of Posco, held a meeting Tuesday at the electronics maker’s production plant in Suwon, Gyeonggi, to discuss expanding cooperation in business and technology development.
The companies are seeking to expand technological and business cooperation with a possible joint project in the future, said Posco in a release that day.
With the signing of the contract, Posco will supply steel sheets for Samsung Electronics’ home appliances until 2026.
The volume of Posco’s steel supply to Samsung Electronics will be increased by 25 percent from now, according to the company.
Posco has been supplying steel products including cold-rolled steel, electrical steel and stainless steel to Samsung Electronics.
The agreement is aimed at ensuring a stable supply of steel products for Samsung Electronics using Posco’s global supply chain networks, said the company.
Posco plans to develop high-intensity stainless steel for refrigerator doors, which will be 20 percent thinner with intensity improved by 50 percent compared to its previous product, in collaboration with Samsung Electronics.
The upcoming stainless steel product will begin shipping this year. The company will also supply color-coated steel, and PosMAC, or Posco Magnesium Alloy Coating Product, as well as other advanced steel products to Samsung Electronics.
Moreover, the two companies will establish research facilities for technological cooperation, named Gest Engineering, one at Posco’s Steel Solution Research Lab in Songdo, Incheon, and another at Samsung Electronics’ Suwan plant.
“We believe that Posco can contribute to ensuring stable raw materials supply for Samsung Electronics, with our supply chain network of global production bases and processing centers,” said Kim of Posco.
“Based on the strong tie we have with Posco in the steel sector, the two companies will actively collaborate in a wide variety of areas including future growth business and carbon neutrality, using each company’s capabilities,” said Han of Samsung.