Posco International to supply half shafts to VinFast
Posco International is collaborating with domestic automobile parts manufacturer Erae Automative Systems to supply car parts to a Vietnamese automotive manufacturer VinFast for the company’s first electric vehicles.
The trading company, 62.9 percent owned by Posco, announced Tuesday that it will supply half shafts to be used in around 100,000 electric vehicles to VinFast, an electric vehicle start-up backed by Vietnam’s largest conglomerate VinGroup.
A half shaft is an auto part that transmits power from the engine to the wheels.
Erae Automative Systems is a component manufacturer that specializes in producing auto parts.
Posco International will begin supplying half shafts starting next year, after going through various tests and adjustments of the products. The company said it has set the foundation to expand business or make investments in Vietnam through the deal.
It will first purchase the car parts from Erae Automative Systems and sell them to VinFast.
Posco International said it is also working with group affiliate Posco Steel Processing & Service, which produces motor cores for eco-friendly vehicles, to sell them to European vehicle component makers through its established network.
Posco International “is actively targeting the electric vehicle market, which has seen strong growth,” said a spokesperson for the company in a statement. “In the future, [Posco International] will cooperate with strong mid-sized companies to expand the supply of auto parts for electric vehicles.”
BY JIN MIN-JI [email@example.com]