SEOUL, Oct. 13 (Korea Bizwire) — POSCO International Corp., a South Korean general trading company, said Tuesday that it has signed a deal to supply half shafts to Vietnamese startup VinFast next year for its first electric vehicles.
The auto parts to be built by Erae Automotive Systems Co., a small South Korean auto parts company, will be used in about 100,000 vehicles of the electric vehicle startup backed by Vietnam’s largest conglomerate VinGroup, according to POSCO International.
A half shaft is an auto part that transmits engine power from the transmission to wheels.
It marks the first time that POSCO International has clinched a deal to supply auto parts to VinFast, a move POSCO International officials say could help expand its business in the Southeast Asian country.
POSCO International is an affiliate of South Korean steel giant POSCO.