[Sponsored Report] Posco signs deals to export its tech to IranPosco is looking to enter the Iranian market through exports of its proprietary technologies.
Since the inauguration of current CEO Kwon Oh-joon, the company has raced to procure new sources of revenue through sales of self-developed technology like Finex and Compact Endless Cast & Rolling Mill (CEM).
In March, the company formalized plans to begin selling its steel-making technologies, engineering models and management systems during its 48th general shareholders meeting.
Under this new business model, Posco will collect royalties from steelmakers who make direct use of their technology, as well as part of the revenue from orders won by companies using their management systems. Posco also expects to profit by dispatching its engineers to overseas facilities.
The company’s decision comes amid saturation in the global steel market. Having determined only so much profit can be made from the sale of steel products, it is looking to capitalize on the wealth of technology it has accumulated through 48 years of constant research and development.
This February, Posco signed a memorandum of understanding (MOU) with Iran’s Pars Kohan Diarparsian Steel (PKP) to tap into the country’s high-potential market. Under the agreement, it will build a plant with an annual production capacity of 1.6 million tons in Iran’s Chabahar free economic zone.
The project will be carried out in two stages, with the first involving construction of an integrated steel mill using Finex and CEM technology. The second stage will involve the addition of a cold rolling mill and a continuous galvanizing line.
Posco aims to break ground on the plant within the first half of next year, with commercial production slated to begin in 2018.
The MOU also involves Posco transferring its innovative steelmaking technology, which combines Finex and CEM, to its Iranian partner.
Posco’s subsidiaries are partnering with Korean companies to ease the multinational steelmaker’s entry into the Iranian market.
Posco Daewoo, along with Hyundai Engineering & Construction (E&C), signed a deal with Iran’s Ministry of Health and Medical Education to build a hospital for Shiraz University of Medical Sciences, one of the country’s top medical schools. Posco Daewoo will supply medical equipment, while Hyundai E&C will be responsible for construction.
Posco Energy, in cooperation with the Korea Electric Power Corporation (Kepco), Posco E&C and PKP, recently signed an MOU for an off-gas power plant and desalination project in Iran. Posco Energy and Kepco will be in charge of operating and maintaining the plant and desalination facility, while Posco E&C will oversee their construction.
BY PARK HYE-MI [firstname.lastname@example.org]