New Delhi: The state-owned Steel Authority of India Ltd (SAIL) signed up a contract with Korean steel manufacturer POSCO to set up a strategic alliance for aligning and collaborating with one another in a broad range of strategic business and profitable arenas.

Under the accord, the two companies would be sharing information on business planning, replace engineers, utilize each other's advertising and warehousing system and synchronize in the procurement of coking coal, nickel, ferro-alloys and engagement of transportation vessels.

According to the industry commentators the deal will be helpful for both signatories.

“Posco is seeking to expand its knowledge of the Indian steel market ahead of its entry there, while for SAIL the alliance means a strong foreign partner in a rapidly consolidating steel market,” they alleged

The companies will also work together in areas relating to combined research and development projects.

The recent deal will not only strengthen the link but also unlock an era of large-scale teamwork on strategic business and commercial alignment.