The Forum for Partners in Iran's Marketplace

December 2016, No. 81

IMIDRO Exclusive

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 Tehran.

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 (PERED).

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 MoU .

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 Province.

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.


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  December 2016
No. 81