POSCO will export auto grade steel sheets to Germany

POSCO intends to supply steel sheets to Volkswagen's plant in Germany. For the first time, South Korea's largest steelmaker will export its products for an automotive assembly plant in Germany.

A senior POSCO official said that "Volkswagen recently completed testing of our steel products at their production site. Actual delivery will begin next year after the contract is signed at the end of the year." The list of products to be exported includes steel plates for exterior and panels in volumes ranging from 50,000 tons to 70,000 tons per year.

POSCO declined to explain why a supply contract has not yet been signed with the production site. POSCO explained that the steel plates are for the main critical parts of an automobile that determine its performance. Most German auto manufacturers are very sensitive about quality issues, and it is extremely rare to choose non-German steel manufacturers as their plate suppliers. Even Japanese manufacturers have become unable to do this.

POSCO, meanwhile, has gained recognition by supplying steel plates to Volkswagen's overseas assembly plants in Mexico, India and China. POSCO's Director of Marketing said that "We are currently supplying steel plates to five Volkswagen sites. After gaining confidence in quality and delivery times, we have overtaken the Indian ArcelorMittal plant as the main supplier."