Carmakers and other manufacturers will have access to a whole new generation of steel products thanks to a new agreement between Tata Steel Europe and South Korean steelmaker POSCO.

Tata Steel Europe announced the cross-licensing agreement with 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 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 the agreement means POSCO will be able to produce Tata Steel Europe’s patented MagiZinc, an innovative hot-dipped galvanized coating providing enhanced corrosion protection even in harsh environments.

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

Hans Fischer, chief executive officer, Tata Steel Europe, said: “Tata Steel Europe and POSCO are both recognised as leaders in technological advancement and the two companies have a history of collaboration. By pooling our technical know-how, we will be able to develop and promote market innovation, strengthen our offering and give our customers in several key markets the innovative products they need to be successful.”