POSCO signs 5-year supply agreement with Shell

By Choi He-suk
POSCO announced on Tuesday that it signed a long-term steel plate supply contract with Royal Dutch Shell.
According to POSCO, the agreement is one of the first in which a steelmaker has signed on as a sole supplier to a multinational oil company.
Under the agreement, signed on Sept. 28, POSCO will be the sole supplier of steel plates used in offshore structures built for Shell’s operations for five years.
According to POSCO, the agreement also includes clauses that allow the agreement to be extended for an additional five years.
Shell selected the Korean steelmaker as a long-term vendor for its high technological capabilities, competitive pricing and its capacity to meet demands, POSCO said.
According to POSCO, its steel plates for offshore structures are specially developed to withstand harsh environments, and the integrity of the welded joints is guaranteed at minus 40 degrees Celsius. The company added that it plans to develop plates guaranteed to maintain structural integrity in welded joints at minus 60 degrees Celsius.
(cheesuk@heraldcorp.com)