POSCO is in talks with Iranian steelmaker PKP to export its FINEX technology, a next-generation and eco-friendly steelmaking technology, according to a government source.
“POSCO is one of the Korean firms, which are poised to sign an agreement with their Iranian counterparts for a business deal, during the upcoming minister-level Korea-Iran Business Committee meeting next month,” said a high-level official from the Ministry of Trade, Industry and Energy on Tuesday.
A Korean business delegation composed of about 130 businesspeople from various industries will join the committee meeting to be held in Iran on Feb 29.
Many Korean industrial giants in the delegation, including POSCO, have prepared for Iran’s post-sanctions era.
The nation’s top steelmaker has been looking to join a 2 trillion won ($1.6 billion) project to build a steel plant with annual production capacity of 1.6 million tons in Iran’s Chabahar free economic zone.
Industry sources said POSCO is considering securing a stake in the project in addition to exports of its advanced steelmaking technologies, but the company’s officials declined to comment on the matter.
POSCO has pushed for the exports of its own technological know-how, such as FINEX technology, in its efforts to find a new income source amid falling profits.
The group chairman Kwon Oh-joon is expected to explain of the firm’s technology export drive at the annual investor relations session today.