Korea Times reported that POSCO has decided to develop next generation materials for smart phones 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 Mr 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 that it will sign a memorandum of understanding with Samsung Electronics to jointly develop new materials for a wide range of information technology devices and home appliances.
Samsung, which uses more than 100,000 tonnes 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.
A POSCO spokesman said that "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."
He said that the joint research will further strengthen the corporate relationship between the two and enhance their competitiveness.
Mr Lee Jay yong COO of Samsung visited POSCO's main plant in Pohang, South Gyeongsang Province in April 2011. In return, POSCO chairman Mr Chung paid a visit to Samsung Group headquarters in southern Seoul in September 2011.
The spokesman said that "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."
Electronics industry watchers echoed POSCO's views, saying the latest cooperation pact will create synergy for both enterprises.
An industry watcher said that "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."
He said finding optimal material for its electronic products is crucial to achieving Samsung's goal of becoming the World's No 1 in the home appliance market. He added that "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.
Source - Korea Times
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