KG Dongbu Steel-N2B, Sign 'Win-Win Model' MRO Purchase Agreement

[Asia Economy Reporter Hwang Yoon-joo] KG Dongbu Steel will share the pain caused by the spread of COVID-19 by returning part of the profits from steel equipment parts procurement agency services to society.

On the 15th, KG Dongbu Steel announced that it had signed a memorandum of understanding (MOU) for consumable materials (MRO) procurement agency services with N2B.

MRO refers to consumable materials necessary for the maintenance, repair, and operation of equipment, machinery, and infrastructure required by companies and industrial facilities. It is common to choose MRO procurement agency services to reduce the hassle of purchasing and to achieve economies of scale.

KG Dongbu Steel explained that it agreed with the social contribution model proposed by N2B, called the "Good Friend Program," and decided to participate together. The Good Friend Program uses part of the profits generated from procurement agency services as funds to establish a social contribution fund, which is then used to promote ESG activities such as local community environmental improvements.

With the funds to be raised in the future, KG Dongbu Steel and N2B will jointly engage in ▲ carbon neutrality and environmental improvement ▲ co-growth with small and medium-sized enterprises ▲ support for socially vulnerable groups. They will participate in tree-planting events to reduce carbon emissions and transfer know-how on equipment and inventory management to suppliers through production equipment and process inspections. At the same time, education and living expense support will be provided to help socially vulnerable groups grow and become self-reliant.