Samsung, POSCO boost cooperation

Two firms to jointly develop new materials

POSCO, the world’s third largest steelmaker, has decided to develop next-generation materials for smartphones and other electronic gadgets in cooperation with Samsung Electronics. This is the latest in a series of moves designed to boost business collaboration between Korea’s two leading enterprises.

Since POSCO Chairman Chung Joon-yang took the helm in February 2009, the steelmaker has explored various opportunities to strengthen business cooperation with Samsung and other companies to help realize his grand scheme to turn POSCO into a comprehensive material enterprise.

The company said Wednesday that it will sign a memorandum of understanding with Samsung Electronics Friday to jointly develop new materials for a wide range of information technology (IT) devices and home appliances.

Samsung, which uses more than 100,000 tons of various steel products annually to manufacture electronics goods, is one of POSCO’s major customers. POSCO also supplies steel and other raw materials to LG Electronics and other electronics makers.

But under the envisioned agreement, the world’s largest handset maker will jointly conduct research and development activities with POSCO to produce steel products tailored for its consumer products.

“POSCO has been trying to become a comprehensive material enterprise over the past few years. As part of our efforts to achieve our goal, we decided to cooperate more closely with Samsung Electronics in R&D to create next-generation materials,’’ a POSCO spokesman said.

He said the joint research will further strengthen the corporate relationship between the two, and enhance their competitiveness.

Samsung chief operating officer Lee Jay-yong visited POSCO’s main plant in Pohang, South Gyeongsang Province in April last year. In return, POSCO Chairman Chung paid a visit to Samsung Group headquarters in southern Seoul in September last year.

“We will cement our business relations with Samsung and other leading firms by producing more specified steel products tailor-made for a wide array of industrial goods,’’ the spokesman said.

Electronics industry watchers echoed POSCO’s views, saying the latest cooperation pact will create synergy for both enterprises.

“Samsung has been closely cooperating with POSCO to help the latter develop new materials for its industrial goods. The new agreement will help Samsung secure high-quality materials at lower costs,’’ an industry watcher said.

He said finding optimal materials for its electronic products is crucial to achieving Samsung’s goal of becoming the World’s No. 1 in the home appliance market, “Through more close cooperation with POSCO, Samsung will be able to strengthen the competitiveness of its goods and lower production costs.’’

Samsung has been trying to establish a stronger foothold in the global home appliance sector. It plans to exceed Whirlpool in the world’s air conditioner market this year and capture greater market shares in washing machines and other home appliances. <The Korea Times/Lee Hyo-sik>

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