South Korea's largest steelmaker POSCO Co., Ltd has agreed to form a joint venture with Singapore-based raw material and steel trader Novo Group Limited and Singaporean steel trader and manufacturer HG Metal Manufacturing Limited to sell and distribute steel products to offshore marine contractors in Southeast Asia.
According to a joint statement released by the companies, the initial startup capital of the joint venture, which is to be called POS-SEA, will be $2 million. The new company will supply steel plates for all structures, such as module walls, topside hulls, FPSOs (floating production, storage and offloading vessels), and jackup rigs.
POSCO will hold a 51 percent stake in the joint venture, while HG Metal and Novo Group will each hold 24.5 percent stakes.
The joint venture will avail of HG Metal and Novo Group's warehousing facilities and distribution network to market steel to customers in Southeast Asia. By investing in the joint venture, POSCO hopes to be ready to profit from the next upturn in the offshore marine sector.