POSCO Strikes Stainless Deal
By Kim Yoo-chul
Staff Reporter
Steel giant POSCO has signed a long-term contract with Thailand's biggest auto component manufacturer, Yarnapund to supply it with stainless steel.
Under the agreement, POSCO will supply 5,000 tons, which will be used in luxury cars, by the end of this year, a company spokesman said.
Yarnapund is the key parts supplier of Japan's Toyota Motor Corp. and the auto parts maker also sells to Honda Motors and Isuzu Motors.
The Thai company provides brake pedals and car mufflers to Toyota's Thailand factory.
``By signing a memorandum of understanding (MOU) with Yarnapund, POSCO has expanded our client base in selling our stainless steel,'' the official said.
``The deal will pave the way for us to achieve this year's 50,000 tons of stainless steel production target.''
The long-term deal is the first for POSCO this year. POSCO officials say the MOU is significant as Japanese steelmakers have so far been sweeping stainless steel deals thanks to their bigger penetration in the nation.
Automobile sales in January in Thailand posted the highest year-on-year increase in seven years driven by government stimulus spending, low interest rates, improving farm prices and recovering exports, as well as new model launches and promotional campaigns.
Toyota retained its local leadership in January with 20,289 cars sold and a 40.9 percent share.
Isuzu ranked second with 10,168, mostly pickup trucks, and a 20.5 percent share.
Honda came in third with sales of 7,701 and a 15.5 percent share, according to data offered by POSCO.