South Korean steel major, POSCO has recently announced that the company will sell its own technology officially in a move to boost its revenues.
Given the slump in steel sector since last 18 months, steel prices have fallen significantly across the globe. South Korean steel major POSCO has been forced to look out for new sources of revenue other than the sale of steel products.
The company has decided to sell its self developed steel making technologies as well as engineering models for design and operations. The two technologies decided to be sold by POSCO are FINEX and CEM. FINEX will be sold to 15 clients whereas CEM would cater to 7 clients.
FINEX is a technology in which molten metal is produced using cheap iron ore fines and non-coking coal powder without preliminary treatment. This technology is cost-saving and is in great demand in developing nations which lacks infrastructure required for steel mills.
CEM (Compact Endless cast and Rolling Mill) is cost and time saving technology which hardens molten metal and makes thin steel sheets integrating casting process. This technology can be majorly used in advanced nations.
POSCO thus plans to generate more revenue by earning royalties from steel companies that will use the above two technologies. It will also make additional earnings by sending engineers to oversee the projects which will be using these technologies.
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