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Essar Steel to supply Posco over 1-mn-tonne flat steel products

contracted volume is 30% higher as compared to last year

IANS  |  New Delhi 

Employees walk past an Essar Group logo outside their headquarters in Mumbai. (Photo: Reuters)

For the second year in a row, has signed a strategic long-term memorandum of understanding (MoU) with for supply of 1.1 million tonnes of flat products during the current financial year, a company statement said on Thursday.

The contracted volume this year is 30 per cent higher as compared to last year.

The is in line with Steel's strategy to lock-in a certain portion of its production through long-term arrangements.

In addition to Posco, has MoUs with customers from auto, infrastructure sector and overseas customers as well.

"The long-term arrangement helps us in better working capital management and manage finished goods inventory. Long-term arrangements reflect the confidence of our customers in the quality, reliability and service of our products," said Dilip Oommen, CEO and MD,

The company has been ramping up production over the last two years. In the last year, its production was up by 47 per cent at 5.6 million tonnes and its current year target is seven million tonnes.

First Published: Thu, May 04 2017. 16:48 IST