POSCO DAEWOO, South Korea’s largest trading company and subsidiary of South Korean steelmaker POSCO Group, has announced that it has signed a memorandum of understanding (MOU) with South Korean auto parts maker Sungwoo Hitech in an effort to promote a business partnership to supply and sell auto parts to global automakers. The move aims to strengthen POSCO DAEWOO’s steel business by covering not only trading but also manufacturing, processing and sales.
According to the company’s statement, the two companies plan to establish an integrated supply network for steel materials and auto parts in the Americas and India to respond to the changing environment in the automobile industry. The companies will also jointly promote new car models.
Sungwoo Hitech, founded in 1977, is the nation's biggest auto parts maker with production bases in nine countries including China, the Czech Republic, Mexico, and Germany. The company raised KRW 3.5 trillion ($3.1 billion) from consolidated sales last year.