Essar Steel is one of India’s major steel maker with steel production capacity of 10 MnT pa. The steel company achieved 47% Y-o-Y growth in flat steel production to 5.6 MnT in FY17.
As per latest reports, the company has inked a pact with POSCO to supply 1.1 MnT flat steel in FY18.
“Essar Steel has signed a strategic long-term MoU with POSCO for supply 1.1 million tonne of flat steel products during the current financial year,” the company said in a statement.
This is second year in a row that Essar Steel has signed such a contract. The contracted volume this year is higher by 30% compared to last year.
The pact is in line with Essar Steel’s strategy to lock-in a certain portion of its production through long-term arrangements.
Commenting on the MoU, Essar Steel CEO & MD Mr. Dilip Oommen said, “Essar Steel’s MoU with international player Posco revalidates our commitment to the ‘perfect partnership’. The long-term arrangement helps us in better working capital management and manage finished goods inventory.”
“Long-term arrangements reflects the confidence of our customers in the quality, reliability and service of our products,” he added.
~Sourced
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