South Korean steelmaker POSCO has signed a Memorandum of Understanding (MoU) with Iran worth EUR1 billion for the exchange of technical knowledge and expertise spanning a two-year period.

POSCO is engaged in a number of projects in Iran having recently signed an MoU with Pars Kohan Diarparsian Steel (PKP) and – via POSCO Daewoo – a deal with Iran’s Ministry of Health and Medical Education to build a hospital for Shiraz University of Medical Sciences.

In conjunction with Korea Electric Power Corporation (Kepco), Posco E&C and PKP, Posco Energy has signed a MoU for an off-gas power plant and desalination project. Posco Energy and Kepco will handle operation and maintenance, while Posco E&C will oversee construction.

A EUR220 million MoU has also been signed by Posco Daewoo to build Parsian Port, west of Hormuzgan Province, and there are many other energy, railroad and infrastructure projects in the pipeline worth US$37.1 billion, all part of an economic co-operation agreement agreed by the two countries.

South Korean president Park Geun-hye’s recent visit to Iran highlighted the importance attached to industrial relations between the two countries.