POSCO Inks Ä1 bn
Agreement with IMIDRO
The MoU was signed by Karbasian and Young Sang Kim, Chairman of the
board of POSCO Daewoo on the sideline of the South Korean
presidentís visit to Tehran.
Iran and South Korea are set to mark a new chapter in bilateral relations.
President Park Geun-hye of South Korea paid a historic visit to Iran in
early May. Park is the first South Korean president to visit Iran since the
countries established diplomatic ties in 1962. Accompanied by four ministers
and 231 business leaders and traders, the Korean president came to Iran to
take advantage of the post-sanctions opportunity to promote trade with
This of course was a win-win situation for both countries. Meanwhile,
Koreaís POSCO and POSCO Daewoo which were part of the high level Korean
delegation to Iran signed agreements with the Iranian Mines and Mining
Industries Development and Renovation Organization (IMIDRO).
POSCO Inks Agreement with IMIDRO:
A memorandum of understanding was signed by Mehdi Karbasian, Chairman of
IMIDRO Board of Directors, and Kwon Oh-joon, CEO of POSCO on the sideline of
the South Korean presidentís visit.
The duration of the MoU is two years and its value is about one billion
euros. According to the agreement, POSCO and IMIDRO will exchange
experiences and technical knowhow.
Iran has valuable experience and knowledge in steel industry and DRI sectors
so that some new steel projects are implemented with Iranian technology
One of the points of the new cooperation between Iran and technology owning
countries is transfer of technical knowledge to Iran. Also, financing and
attraction of foreign investment into Iranian projects are as important as
knowledge transfer. This issue has been underlined in the above-mentioned
POSCO, established in 1968 in Pohang, South Korea, aimed to expand steel
industry. It has activities in mining industries such as steel (hot and cold
rolled, steel sheets, galvanized and stainless steel), magnesium, and
titanium and aluminum sectors.
POSCO is one of the largest steelmakers in the world which has experience
and capabilities in engineering and construction sectors.
Since the inauguration of current CEO Kwon Oh-joon, the company has raced to
procure new sources of revenue through sales of self-developed technology
like Finex and Compact Endless Cast & Rolling Mill (CEM).
Under this new business model, POSCO will collect royalties from steelmakers
who make direct use of their technology, as well as part of the revenue from
orders won by companies using their management systems. POSCO also expects
to profit by dispatching its engineers to overseas facilities.
IMIDRO, POSCO Daewoo Sign MoU on Establishment of Parsian Port:
IMIDRO and POSCO Daewoo signed a memorandum of understanding on construction
and development of Parsian Energy Intensive Industrial Special Economic Zone
port in Iran.
The MoU was signed by Karbasian and Young Sang Kim, Chairman of the board of
POSCO Daewoo on the sideline of the South Korean presidentís visit to Tehran.
Based on the above mentioned MoU, POSCO Daewoo will establish Parsian port
in Parsian town (Hormuzgan Province).
The 220 million euro MoU will be in the form of investment.
POSCO Daewoo guarantees to provide knowhow, resources, means and required
technology for development of Parsian port.
It will also provide engineering services, procurement and supply of
equipment, construction, installation and start-up of establishment and
development of Parsian port project.
An IMIDRO subsidiary, Parsian Energy Intensive Industrial Special Economic
Zone, with an area of over 9800 hectares is located in west of Hormuzgan
With regard to easy access to free waters and energy resources, this zone
has been created for the development of energy intensive industries such as
steel, petrochemicals, etc., and export of these products.
POSCO Daewoo is one of the POSCOís subsidiaries in South Korea which has
activities in international trade and business, organizing projects and
resources development sectors in various industries.
In February, POSCO signed an MoU with Iranís Pars Kohan Diarparsian Steel
(PKP) to tap into the countryís high-potential market. Under the agreement,
it will build a plant with an annual production capacity of 1.6 million tons
in Iranís Chabahar Free Economic Zone.
The project will be carried out in two stages, with the first involving
construction of an integrated steel mill using Finex and CEM technology. The
second stage will involve the addition of a cold rolling mill and a
continuous galvanizing line.
POSCO aims to break ground on the plant within the first half of next year,
with commercial production slated to begin in 2018.
The MoU also involves POSCO transferring its innovative steelmaking
technology, which combines Finex and CEM, to its Iranian partner.
POSCOís subsidiaries are partnering with Korean companies to ease the
multinational steelmakerís entry into the Iranian market.
POSCO Daewoo, along with Hyundai Engineering & Construction (E&C), signed a
deal with Iranís Ministry of Health and Medical Education to build a
hospital for Shiraz University of Medical Sciences, one of the countryís top
medical schools. POSCO Daewoo will supply medical equipment, while Hyundai
E&C will be responsible for construction.
POSCO Energy, in cooperation with the Korea Electric Power Corporation
(Kepco), POSCO E&C and PKP, recently signed an MoU for an off-gas power
plant and desalination project in Iran. POSCO Energy and Kepco will be in
charge of operating and maintaining the plant and desalination facility,
while POSCO E&C will oversee their construction.