POSCO, the nation’s top steelmaker, said Thursday it had signed a memorandum of understanding with Renault Samsung Motors, the Korean unit of France’s Renault Group, to develop high-performance steel products for cars.

“Renault Samsung and POSCO have overcome the economic slowdown through innovations. Our partnership will create business synergies in various business functions, ranging from production to technology to marketing,” said Oh In-hwan, POSCO’s steel business division chief.

Renault Samsung CEO Francois Provost was also quoted as saying, “POSCO is the best partner with the industry’s highest technological prowess. The MOU will strengthen our ties.”

POSCO especially pinned high hopes on Renault Samsung’s planned production of new midsize and compact sedan and sport utility vehicle model that starts next year.

Along with high-strength steel sheets, the company plans to offer the nation’s first hot press forming of tailor welded blanks, an advanced forming technology that reduces the car’s weight while increasing its durability.

The two companies have continued joint research and development projects such as the world’s first adoption of magnesium sheets for mass-production cars and the nation’s first LPG donut-shaped tanks for LPG cars. And more recently they are also working on futuristic automotive materials.

Currently, POSCO supplies automotive steel sheets to the world’s top 10 carmakers. Since entering the market in the late 1990s, POSCO has extended production and sales networks globally.

Last year its car sheet production exceeded an annual 8.3 million units. The company aims to hit the 10 million mark by 2018.

By Seo Jee-yeon(jyseo@heraldcorp.com)