POSCO plans to sign preliminary agreement on Iran steel mill

27 January 2016

South Korea's POSCO (005490.KS) plans to sign a preliminary agreement with Iranian steelmaker PKP in March to buy a stake in a $1.6 billion steel mill project in the Middle Eastern country, a source with knowledge of the matter said.

In September, the firms signed a memorandum of understanding to build a plant with an annual production capacity of 1.6 million tonnes in Iran's Chabahar free economic zone.

"Now that sanctions have been lifted, POSCO and PKP plan to sign a MOA (memorandum of agreement) next month, moving one step further from the MOU," said the source, who asked not to be identified because of the confidentiality of the matter.