POSCO, the world's fourth largest steelmaker, has entered into a strategic partnership with Steel Authority of India, or SAIL, India's largest state-run steel maker.
According to an announcement from POSCO at SAIL's headquarters in Delhi on Thursday, POSCO's Vice President Cho Sung-sik and SAIL's personnel director signed a memorandum of understanding for a strategic partnership.
Both parties will share management techniques including management information, enterprise resource planning (ERP) and Six Sigma practices over the next three years.
The two companies will also work together to develop and buy raw materials and share sales network in India. The partnership does not include joint stock ownership or joint research of steelmaking technology.
SAIL is a state-run steelmaker with an annual production capacity of 15 million tons across six mills in India. The Indian government holds an 86 percent stake.
POSCO expects the partnership will lead to a breakthrough in its project to build a steel mill in India, which has stalled because of opposition from local residents and delays by the Indian government.
POSCO said the partnership in the future could lead to cooperation in developing steelmaking technology and joint projects.