Korean POSCO Set Up Joint Venture for New Indian Steel Plant

SEATTLE (Scrap Monster): Korean integrated steelmaker Posco announced that it has set up a joint working group (JWG) with state-run Rashtriya Ispat Nigam Limited (RINL) to establish a new Greenfield steel plant in Visakhapatnam, South India. The two companies had signed an initial agreement on investment of approximately INR 35,000 crore for the proposed 5 million tonne per annum (Mtpa) steel plant.

The representatives of both the companies discussed on the implementation plan, in the presence of steel ministry officials. The meeting agreed setting up of the JWG, which would meet in regular intervals to facilitate the implementation of the initial MoU signed between them. Both the companies will have one representative each in the JWG.

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The representatives of the Korean company have visited RINL’s existing facility in Vizag several times. The proposed steel unit will be set up adjacent to the existing facility. The Korean steelmaker has been offered the land required to build the plant, in addition to uninterrupted supply of iron ore.

Once operational, the plant will produce high-end steel products, primarily for the automotive industry.

This is the third attempt by Posco to enter the Indian market. The earlier attempts, in partnership with the Odisha government in 2005 and with SAIL in 2007, had ended in failures.