South Korean steelmaker, POSCO has signed a memorandum of understanding with Saudi Arabia’s sovereign fund to explore new business opportunities in the kingdom, Saudi Gazette has reported. The steelmaker did not elaborate on the details of the agreement with the Saudi Arabian Public Investment Fund (PIF), but industry sources speculated it may be connected with Daewoo International Corp’s push to help build an automobile assembly plant in Saudi Arabia. The automobile assembly plant project, led by Daewoo International, calls for building an assembly plant churning out 2.0- to 2.4-liter mid-sized cars for the Saudi middle class at the cost of $1bn. Most of the investment fund will be paid for by the Public Investment Fund. Al Safar Group of Saudi Arabia will be an investor in the project through a special purpose corporation called SNAMC. The plant will be up and running by the second half of 2017.
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