SEATTLE (Scrap Monster): The South Korean steelmaker POSCO announced that it has joined hands with India-based infrastructure group Adani to invest approximately $5 billion in setting up an integrated steel mill project in the western Indian state of Gujarat. The proposed plant will help the South Korean steel giant to tap the growing steel demand in the Southeast Asian region.
According to company press release, the agreement seeks to explore new business opportunities in various industries including renewable energy, hydrogen and logistics. Among the top priorities include setting up of a green, environment-friendly integrated steel mill at Mundra. The launch of the plant would put Adani Group in direct competition with other domestic steel majors such as Tata Steel, JSW Steel and AM/NS India.
Adani Group has been diversifying its business during the past several months. It had recently forayed into copper and aluminum businesses.
This is not the first time that POSCO has announced steel development plans in India. The proposed $12 billion steel unit in the state of Odisha could not make progress due to delay in obtaining iron ore mining rights and opposition from locals against acquisition of land. This time, the company is unlikely to face such issues as it will make use of the land owned by Adani Group.
As per reports, Adani is Group is likely to hold majority stake in the joint steel venture project.