South Korean steel giant POSCO and Magnesium Flachprodukte GmbH (MgF), a subsidiary of German steelmaker ThyssenKrupp Steel Europe AG, intend to cooperate in the production and supply of magnesium sheet. The two companies have signed a memorandum of understanding (MoU) to support each other in the event of supply bottlenecks to guarantee security of supply for the auto industry.
"The purchasing departments of many auto manufacturers also stipulate such second-source arrangements for steel and other automotive materials," said Dr. Hans-Peter Vogt, managing director of Magnesium Flachprodukte GmbH. Vogt signed the MoU together with Sang-Ho Cho, senior vice president at POSCO, who said, "An agreement of this nature is particularly important for magnesium sheet. POSCO and MgF are world leaders in the production of magnesium flat products."
Magnesium weighs only around a quarter as much as steel and is 35 percent lighter than aluminum.