POSCO Signs 3-Year Steel Supply Contract with Samsung Electronics, Expanding Supply Volume by 25%

POSCO will strengthen technological cooperation with Samsung Electronics following the signing of a Long Term Agreement (LTA) to jointly respond to the global economic downturn.

Han Jong-hee, Vice Chairman and CEO of Samsung Electronics (left), and Kim Hak-dong, Vice Chairman and CEO of POSCO (right)

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On the 25th, POSCO Vice Chairman Kim Hak-dong personally visited Samsung Electronics' Suwon campus and met with key executives including Samsung Electronics Vice Chairman Han Jong-hee, agreeing to expand the scope of exchanges and cooperation between the two companies, including the long-term supply contract signed last March.

POSCO and Samsung Electronics' Home Appliances and Visual Display Division previously signed a three-year long-term supply contract for cold-rolled and plated products for home appliances as well as electrical steel products. This is the first time POSCO and Samsung Electronics have entered into a long-term supply agreement.

This contract strengthens the partnership to enable Samsung Electronics to stably procure steel products by utilizing POSCO’s integrated overseas corporate supply chain, supporting the leap forward of Samsung’s core business in home appliances.

Through this, POSCO plans to increase the supply volume by approximately 25% compared to the existing level. In addition to the previously supplied cold-rolled, plated, electrical steel, and stainless steel products, POSCO will also expand supply to color steel products through POSCO Steelion in the future.

Furthermore, both companies have agreed to expand technology exchanges for the development of eco-friendly and high-performance steel materials and to jointly explore new business opportunities.

POSCO plans to collaborate with Samsung Electronics to newly develop and begin supplying within the year a high-strength stainless steel product for refrigerator doors that reduces thickness by about 20% for weight reduction while increasing strength by approximately 50%. POSCO will also supply high-performance, high-strength, and high-corrosion-resistant steel sheets such as POSMAC, a POSCO-specialized steel grade.

Additionally, the two companies will establish “Guest Engineering” spaces for technological collaboration at POSCO’s Songdo Technology Research Institute Steel Solutions Lab and Samsung Electronics’ Suwon campus, where researchers will regularly meet to activate technological cooperation.

POSCO Vice Chairman Kim Hak-dong stated, “By utilizing POSCO’s integrated supply chain of global production subsidiaries and processing centers, we believe we can contribute to Samsung Electronics’ stable material procurement and production stabilization,” adding, “POSCO will continue to jointly develop customized specialized steel materials with Samsung Electronics and provide the best products and quality to support customer success.”

Samsung Electronics Vice Chairman Han Jong-hee said, “Based on solid cooperation in the steel sector with POSCO, we will actively collaborate across a wide range of areas including future growth industries and carbon neutrality by leveraging the capabilities and know-how of both companies.”

Based on this cooperation, the two companies plan to strengthen communication by regularizing management meetings to ensure supply stabilization and actual product innovation.

Meanwhile, both companies share a strong commitment to eco-friendly management and low-carbon product demands, and plan to join forces to expand the application of steel products, which have excellent recyclability from a Life Cycle Assessment (LCA) perspective compared to plastics and aluminum.

Going forward, POSCO will align with the global carbon neutrality trend by developing and supplying products made using steel scrap and focusing its capabilities on producing steel materials with carbon reduction manufacturing technologies.

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