Tata Steel Europe announced a cross-licensing agreement with South Korean POSCO, which will allow the company to increase the range of advanced products to key markets including the automotive and construction sectors.

The deal will allow Tata Steel Europe to access Physical Vapour Deposition (PVD) technology, an innovative process allowing steels to be given anti-corrosion coatings without the current requirement to heat them during the hot-dip galvanising process. This has the potential to allow for an increase in the number of steel products on which specific anti-corrosion coatings can be used.

In exchange, POSCO will be able to produce Tata Steel Europe’s patented MagiZinc. MagiZinc Auto is an advanced hot-dip zinc coating alloyed with magnesium and aluminium. It reduces tool pollution for improved press shop efficiency while delivering superior corrosion protection and scope for weight reduction.

Its formulation allows it to outperform conventional galvanized steel, which is why the coating has been widely adopted by the EU automotive and construction industry since its market introduction in 2009.

The new PVD technology developed and patented by POSCO is already adopted in the electronics industry but needs further development for automotive and construction applications. The technology will help Tata Steel Europe meet the emerging need for sustainable steel products for next-generation cars and buildings and will allow the development and production of high-performing steels demanded by global customers.

Tata Steel is one of Europe’s leading steel producers, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe. The combined Tata Steel group is one of the top global steel companies, with an annual steel capacity of 27.5 million tonnes and almost 74,000 employees across five continents. The group’s revenue in the year ending March 2017 was $18.1 billion.