South Korean steel giant Pohang Iron and Steel Co. (POSCO) has signed an agreement to source 1 million mt of hot rolled coil (HRC) from Indian steelmaker Essar Steel, which is currently under bankruptcy proceedings, a POSCO official said on Wednesday, July 3.
“POSCO has found Essar to be a very dependable supplier to meet its requirements of stringent quality control and timely deliveries. The partnership has stood the test of time and this is the fourth contract signed between the two companies for steel supplies,” G H Bang, managing director of POSCO Maharashtra, Indian subsidiary of POSCO, said in a statement.
Essar Steel, promoted by the Ruia family, has been under bankruptcy proceedings for the last two years and a final resolution is still pending, while ArcelorMittal’s bid for the steel company has received approval from a committee of creditors before the bankruptcy resolution authorities.