Sail, Posco form group to shape alliance

Steel Authority of India (Sail) and Korean steelmaker Posco have formed a joint working group with four officials each to give final shape to their alliance.

The alliance, first of its kind in the domestic steel industry, was signed between the two steel majors in August.

The South Korean company is building a 12 million tonne steel plant in Orissa at a cost of Rs 52,000 crore.

Sail chairman S K Roongta today said the alliance would involve exchange of resources along with joint marketing, warehouses and service centres in India and overseas.

Posco would get a strong marketing network in India, while Sail could benefit from the South Korean firm's global presence.

There would be exchange of engineers, technicians and other professionals. Subject to further discussions, both companies would also co-operate in joint R&D and other mutually-agreed projects.