POSCO will supply steel sheets to a Volkswagen plant in Germany. This is the first time for the largest steel maker in Korea to export steel plates to Germany''s automobile assembly plant.

A high ranking POSCO official said that "Volkswagen has recently completed a test for our steel products for use with its production site. Actual supply will begin next year after a contract within the year''s end."

The items to be exported will include steel plates for exterior and panels, with its volume estimated at 50,000 tonnes to 70,000 tonnes a year. POSCO declined to reveal information such as what kind cars and production site as the supply contract has yet to be signed.

A POSCO official explained that "As auto steel plates are critical parts that determine the car''s performance, most German auto makers are very meticulous about their quality and it''s rare for a non-German steel maker to supply plates. Even no Japanese steel maker has been able to do so.”

POSCO, meanwhile, has gained confidence by supplying auto steel plates to overseas Volkswagen assembly plants in places like Mexico, India, and China.

Mr Son Chang hwan, POSCO director responsible for automotive materials marketing, said that "Currently we supply steel plates to five Volkswagen plants. After we gained trust in terms of uniform quality and delivery date compliance, the Indian plant designated us as the primary supplier overtaking ArcelorMittal."

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