Posco Daewoo forges deal to receive steel products from Russia's Amurmetal

By Lim Chang-won Posted : June 19, 2018, 13:47 Updated : June 19, 2018, 15:27

[Posco Daewoo]



SEOUL -- Posco Daewoo, a trading company in South Korea, has forged a deal with Russian steel company Amurmetal to receive some 300,000 tons of steel products a year from August.

Posco Daewoo officials said the two companies have signed a memorandum of understanding (MOU) on their long-term contract. Financial terms were not disclosed, but the contract reflects Posco Daewoo's efforts to expand steel exports with high value-added and premium products.

Amurmetal is a key company in Russia's Far East region, fully supported by the Khabarovsk province. The tie-up was seen as a win-win deal as Posco Daewoo can secure a stable supply of billets, the second-stage product of steel production.

The Russian company hopes to boost its annual production capacity from 700,000 tons to more than one million tons. With Russian steel, POSCO Daewoo can strengthen its steel trading business and boosts steel exports to third countries.

"Previously, we've sold Amur Steel products, based on one-off short-term contracts," a Posco Daewoo official said. "With our long-term contract, we can open a stable market in our trade with third countries."

This story was contributed by Jazin Wee, an editorial assistant.



 

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