POSCO to support SMEs for global competitiveness

POSCO announced Wednesday that it would support local small- and medium-sized enterprises to secure competitiveness in the global market.

The steelmaker formed a partnership with 28 small- and medium-sized companies to collaborate in developing each of them into a “leading midsized company of global standing” on Wednesday. SMEs that signed on to POSCO’s scheme include industrial equipment makers Seoul Engineering Co. and Dongbang Plantech Co.

According to POSCO, leading midsized companies of global standing refer to companies that have the technological capabilities to manufacture goods that are marketable on the international market, and generate sales of more than 100 billion won ($89 million) on an annual basis.

Under the plans, POSCO will review promising SMEs each year with the aim of creating 10 leading midsized companies of global standing by 2015, and 30 such companies by 2020.

In order to achieve such targets, POSCO said that it will provide support in improving SMEs’ technological capabilities and overseas sales routes, and consulting and training services.

For improving SMEs’ technological capabilities, POSCO said that it will transfer patents and collaborate in research and development.

As for improving the routes for overseas sales, the steelmaker said that it will apply its global network, including that of the recently acquired trading firm Daewoo International, to the SMEs in the scheme. The steelmaker said that it would also set up “Global Growing Centers” at its overseas operations to facilitate SMEs’ overseas expansion.

In addition to the new program for SMEs, POSCO presented 42 of its suppliers as POSCO Certified Partner or PCP.

Selected each year, companies given the PCP certificate are given preferred status when negotiating supply contracts, and are provided with benefits such as exemption from different types of deposit payments.

By Choi He-suk  (cheesuk@heraldcorp.com)