South Korea's leading steelmaker POSCO on Monday said it has reached an agreement with Jilin Province to beef up cooperation in the steel, automobile, construction, and other areas.

Under the agreement, POSCO will take part in the planned steel plant construction and raw material development, while supplying steel products used for automobiles and trains.

The company is also to cooperate in the development of bio fuels with the local government.

"Jilin is a place with a speedy economic growth, with its geographic location of great importance since its proximity to the Korean Peninsula," Jung Joon-yang, president of the POSCO, said.

The deal is expected to allow POSCO with greater market dominance in the region, mainly in the steel sector, an official at the company was quoted as saying by Yonhap News Agency.