Posco, South Korea’s leading steel company, will implement a new bidding system next month that limits excessively low bids for purchasing materials and equipment, the company said.
The new system will help eliminate companies from casting bids under 85 percent of the average price, the company said. The average price is the average of the standard price and bids.
As the first major local company to implement the system, Posco hopes to foster mutual development with small and midsize suppliers, the company said.
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(Yonhap) |
“By implementing the new bidding system, SMEs would be able to secure stable profit. This will help companies come up with long term development on job security and invest on research and development,” Posco said in a statement.
The previous bidding system that selects the lowest bid had the possibility of aggravating excessive price competition and low quality goods.
By preventing low quality materials and equipment, Posco could also benefit by producing high quality products, the company said.
By Kim Bo-gyung (
lisakim425@heraldcorp.com)
