POSCO, the world’s fifth-largest steelmaker, said Wednesday that its high-strength, lightweight steel products were being used in Renault’s new concept car EOLAB for the first time.

The materials, POSCO executives said, would help minimize the vehicle’s weight while enhancing the fuel economy.

Renault’s first-ever plug-in hybrid concept car was designed to travel up to 100 kilometers on just 1 liter of gas.

“POSCO’s fuel-saving technology has gained recognition throughout the European automobile market via our contribution to Renault’s EOLAB project,” said a POSCO spokesman. 

EOLAB, which is 400 kilograms lighter than the Renault Clio, is expected to make its debut at this week’s Paris auto show as a savvy plug-in hybrid. It is the result of years of cooperation between POSCO and the European automaker.

To achieve the higher levels of efficiency, EOLAB was built by using hot press forming steel and twinning-induced plasticity steel produced by POSCO. The magnesium alloy roof, which weighs only 4 kilograms, was also made by the local steelmaker.

Among the five partner companies that participated in the EOLAB development project, POSCO was the only Asian firm, the steelmaker said. The others were all European, including French tire manufacturer Michelin and international auto parts maker Faurecia.

POSCO and Renault have been collaborating to develop fuel-saving, lightweight vehicles since 2012.

POSCO chairman Kwon Oh-joon recently said that the automobile steel plates would be a key value-added product for the group’s future growth.

In 2013, POSCO sold 7.9 million tons of car steel sheets, an 8.3 percent increase from a year earlier.

By Park Han-na (hnpark@heraldcorp.com)