Hyundai Steel and POSCO Sign MRO Purchasing Agency Agreement with N2B

Consignment Purchase of Consumable Materials Needed for Maintenance and Repair
Strengthening Hyundai Steel's Procurement Competitiveness

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Steel will procure consumable materials through the POSCO group companies.

On the 18th, Hyundai Steel announced that it has signed a purchasing agency agreement with N2B, a company specializing in consumable materials (MRO). MRO refers to consumable materials needed for the maintenance, repair, and operation of equipment, machinery, and infrastructure required in businesses and industrial facilities.

Through this agreement, Hyundai Steel will procure electrical materials, hand tools, steel equipment parts, and more under optimal conditions. Hyundai Steel plans to promote purchasing agency services for steel industry-specialized items to enhance operational efficiency. Consumable materials tend to have low work efficiency and are cumbersome relative to their amount and number of transactions, leading major companies to actively adopt purchasing agency services.

With the purchasing agency agreement, Hyundai Steel expects not only to optimize procurement but also to enable the responsible personnel to perform their tasks more strategically, ultimately improving the overall work efficiency of the company in the long term.

A notable feature of this agreement is a program in which Hyundai Steel will allocate a portion of the profits generated through the purchasing agency business with N2B to a fund for social contribution.

The established fund will be used for carbon neutrality and environmental improvement activities such as sea environment restoration and tree planting events near the steelworks promoted by Hyundai Steel, as well as co-prosperity activities including support for improving working environments and manufacturing equipment consulting for small and medium-sized enterprises, and support for the growth and independence of socially vulnerable groups through vocational training for children aging out of childcare, technical and academic mentoring, and more.

Hyundai Steel’s agreement is expected to become an exemplary ESG model for win-win cooperation beyond simple collaboration.