CENS reported that after their top level managers had a face to face talk for the first time, China Steel Corporation and POSCO will reinforce mutual cooperation on exploring overseas material supply and new products.

Led by the chairman Mr Chung Joon yang, a group of POSCO's high level executives came to Taiwan to meet CSC's chairman Mr Tsou Juo chi, president Mr Andrew Sung and other directors earlier.

Insiders familiar with the face to face meeting confirmed that the both parties underwent talks over further cooperation on the said issues.

In fact, the cooperation between CSC and POSCO has just begun since the latter helped the former acquire a 2.5% stake indirectly in the Roy Hill, an iron ore mining project in Australia, this April, which sets a positive tone for both sides to build closer partnership in the short term.

Presently, 70% of the Roy Hill’s ownership is commanded by the local steelmaker Hancock Steel & Fabricating, 12.5% by POSCO and 2.5% by Korea's STX, a holding company and CSC each.

At the face to face meeting with CSC's executives, POSCO's Mr Chung reportedly indicated that his company will try to join hands with the Taiwanese partner on exploring new sources of raw material supply, exchanging technologies and developing new steel products in the future.

Closer partnership with POSCO will be certainly helpful to CSC in driving its business growth. The Taiwanese steelmaker raked in revenues of TWD 240.37 billion and net profits of TWD 19.493 billion in sales revenue and net profits, respectively, in 2011 as compared to POSCO's sales revenue of over KRW 39 trillion and net profits of KRW 3.27 trillion for the same year.

Source - CENS

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