South Korean steel giant Posco said Tuesday it had signed its first ever long-term agreement with Samsung Electronics in a bid to expand technical cooperation between the two industrial giants and to jointly seek new business opportunities.

According to Posco, its Vice Chairman Kim Hak-dong and Samsung Electronics Vice Chairman Han Jong-hee visited Samsung's headquarters in Suwon, Gyeonggi Province, to iterate the specifics of the three-year agreement the two companies signed in March.

"This contract aims to strengthen the partnership between Posco and Samsung Electronics. (The agreement will) ramp up Samsung Electronics' home appliance manufacturing business and have Posco stably acquire steel materials through its overseas subsidiaries-integrated global supply chain," said an official from Posco.

The first long-term agreement between the two companies specifies that for the next three years, Posco will be supplying Samsung Electronics with cold-rolled steel and plated materials specifically designed for use in home appliances.

According to the agreement, Posco will also be supplying Samsung Electronics with its stainless and electrical steel products until 2026.

For their plans going forward, based on the partnership, Posco said that it aims to supply Samsung Electronics with color-coated steel sheets, through its steel affiliate Posco Steeleon.

The two companies also aim to explore new business opportunities such as the development of new, high-functional steel materials in the future.

For example, Posco said that it plans on developing a new high-strength stainless steel material used in refrigerator doors that will be 20 percent thinner yet 50 percent stronger in strength, compared to its initial stainless steel material.

The completed material, according to Posco, will be supplied to Samsung Electronics this year.

Steel plates with high strength and high resistance to corrosion such as PosMAC, or Posco's magnesium-aluminum alloy coating product, are also in plans to be supplied to Samsung Electronics this year.

In addition, with this agreement, Posco said the two companies plan to open technology collaboration spaces called Guest Engineering at Posco's Technology Research Institute in Songdo, Incheon, and the Samsung Electronics headquarters in Suwon, respectively -- adding that researchers from both companies will meet regularly at the centers to promote collaborations in state-of-art technologies.

According to Posco, the two companies additionally plan to join forces to expand the utilization of recyclable steel products, in a bid to promote environmental, social and corporate governance values and sales of low-carbon products.

"We believe that by using Posco's supply chain, which is integrated with Posco's global production subsidiaries and processing centers, we will contribute to Samsung Electronics' stabilized acquisition of necessary materials and production," said Posco Vice Chairman Kim Hak-dong, during his visit to Samsung Electronics' headquarters in Suwon.

"Based on solid cooperation with Posco in the steel sector, we will actively cooperate in a wide range of areas such as future growth industries and carbon neutrality, by utilizing the two companies' capabilities and know-how," said Han Jong-hee, vice chairman of Samsung Electronics.