South Korean steel giant POSCO and the Ukrainian mining and steel producing company Metinvest Holding (Metinvest) have signed a memorandum of understanding (MoU) to commence exploring and implementing wide-ranging business cooperation in the raw material and steel sectors in Eastern Europe and the CIS region.
According to Metinvest's statement, within the scope of the MoU a joint working group will be formed which will convene regular meetings on a periodical basis to discuss possible opportunities. The areas of mutual interest of the two companies could include, among others, possible joint research and development projects relating to joint exploration and production of raw material sources, production and commercialization of high quality steel rolled products and pipes, as well as exchange of information on technology and management.
"We consider this cooperation as recognition of the strategic steps taken by Metinvest to improve our effectiveness and enhance the quality of our products and to become a major player in the European and world markets," Metinvest's CEO Igor Syry stated.
Meanwhile, POSCO's CEO Joon-Yang Chung was quoted as saying that the company will actively consider investing in Ukraine, including joint ventures in steelmaking and materials development and POSCO Engineering and Construction's participation in development or resources, plants and infrastructure. "We believe that both companies working closely and using their potential will be better off in supporting their countries in overcoming the global economic crisis and preparing for new market challenges after the recession," Mr. Joon-Yang Chung said.
Metinvest claims to account for 26 percent of steel production in Ukraine, the country which owns the world's largest iron ore and sixth-largest coal deposits, and is ranked as one of the world's top ten steel exporting countries.