POSCO Explores Options to Set Up JV Steel Plant in India

SEATTLE (Scrap Monster): The South Korean steel giant POSCO has expressed its intentions in tapping the vast potentials of growing steel market in India by setting up a joint venture with the state-owned Rashtriya Ispat Nigam Limited (RINL) in Visakhapatnam, Andhra Pradesh.

The company officials from POSCO held a meeting last week with RINL officials with regards to the JV plans. In fact, this is the third such meeting between the two parties since the beginning of this year. The recent negotiation meeting was held during the visit of the RINL facility by POSCO officials. It must be recalled that POSCO had submitted an investment proposal to Steel Secretary Binoy Kumar in July this year. The JV steel plant is expected to open access to potential South East Asian markets, in addition to meeting domestic steel demand in the region.

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POSCO had earlier failed on its plan to establish a 12 MTA steel plant at Jagatsinghpur, Odisha at an investment of INR 52K, due to roadblocks in acquiring land for the proposed facility.

Meantime, reports indicate that South Korean Ambassador to India, after his meeting with Odisha administration, has expressed interest to make fresh investments in the state. While addressing the media, he said that the superior business environment and infrastructure facilities make the state a favourable destination of investment.