[Courtesy of Posco Daewoo]
SEOUL -- Posco Daewoo, a trading company affiliated with South Koren steel giant Posco, agreed with domestic auto parts maker to set up a joint supply chain abroad and sell parts to global carmakers.
The trading company said Thursday that it signed a memorandum of understanding with Sungwoo Hitech to make a joint entry into the global automotive downstream steel market. Upstream refers to the material inputs needed for production, while downstream is the opposite end, where products get produced and distributed.
Sungwoo Hitech, a leading producer of automotive components such as body parts, runs factories in China, Mexico, Germany and other countries. Posco Daewoo is involved mainly in the trading of steel products.
Through collaboration with Sungwoo, Posco Daewoo will move away from simple trading and diversify its business from production and processing to sales. They would build an integrated supply chain for steel materials and body parts abroad and participate in the joint development of cars with global carmakers.
reporter
Lim Chang-won
cwlim34@ajunews.com
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