Jindal Stainless, POSCO ink pact on product supply

New Delhi: Jindal Stainless (JSL) signed an agreement with POSCO for selling stainless steel products to the South Korean steel maker but the alliance does not extend to its proposed $12 billion venture in Odisha.

"JSL, a part of the $15 billion OP Jindal group has signed a memorandum of understanding (MoU) with POSCO... to mutually cooperate with each other for long-term joint business opportunities," the largest domestic stainless steel maker has said in a statement.[caption id="attachment_694950" align="alignleft" width="380"]

New deal. Reuters[/caption]

The company said that the pact would also entail joint cooperation in its Odisha project and not POSCO's $12 billion proposed mill in the state.

It said, the pact would be for three years with a provision to further extend it and would focus on "long term based supply of 200 series stainless steel products of the company to POSCO or its subsidiaries".

The move is set to benefit the domestic player as POSCO is the world's largest producer of stainless steel.

The 200 series finds application in domestic as well as industrial use.

Both the companies would also review "joint establishment and exploration for a nickel smelter process in Indonesia" besides "joint cooperation in the company's Odisha project," the statement has said.

Besides the MoU would also review on "overseas joint projects including but not limited to the establishment of service centres and cold rolling mills," the company said.

The parties have engaged in discussions for mutual cooperation and wish to set forth their basic understanding and intents in the MoU, the company added.

PTI